Final answer:
Jacob's monthly mortgage payment for a $455,000 house with a 25% down payment and a 3.95% interest rate is approximately $1,620.94. Over 30 years, he will pay a total of $242,288.40 in interest.
Step-by-step explanation:
Jacob is interested in buying a house with a 25% down payment on a $455,000 home. This down payment amounts to $113,750 (25% of $455,000), which means the mortgage amount will be $455,000 - $113,750 = $341,250. To calculate the monthly mortgage payment, you can use the formula for an annuity which takes into account the principal amount, the interest rate, and the number of payments over the life of the loan. At an annual interest rate of 3.95%, the monthly interest rate is 3.95%/12 months = 0.3292%. Using the formula, Jacob's monthly payment comes out to:
PMT = P [ i(1+i)^n ] / [ (1+i)^n - 1]
Where PMT = monthly payment, P = principal loan amount ($341,250), i = monthly interest rate, and n = total number of payments (360 for a 30-year loan).
After calculating, Jacob's monthly payment would be approximately $1,620.94. Over the course of 30 years, he will pay a total of $583,538.40 for his mortgage. The total interest paid will be the total amount paid minus the original loan amount: $583,538.40 - $341,250 = $242,288.40 in interest.