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Shaquille and Jessica decided on a $160,000 mortgage for 15 years at 4.5%. This results in a monthly payment of $1,223.99. Assuming they only make the minimum payment throughout the life of the loan, what will be the total payback of the loan? How much of the total payback is interest?

User Arber
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Answer: $60,317.20.

Explanation:

The total number of monthly payments over a 15-year mortgage is 15 years x 12 months/year = 180 months.

The total payback of the loan is the monthly payment multiplied by the total number of payments:

Total payback = Monthly payment x Total number of payments

Total payback = $1,223.99 x 180

Total payback = $220,317.20

So, the total payback of the loan will be $220,317.20.

To calculate the interest paid over the life of the loan, we can subtract the initial principal (the mortgage amount) from the total payback:

Interest paid = Total payback - Initial principal

Interest paid = $220,317.20 - $160,000

Interest paid = $60,317.20

Therefore, the total interest paid over the life of the loan will be

$60,317.20

User Ryantm
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