Question

The Griffins bought a $239,000 house. They made a down payment of $45,000 and took out a mortgage for the rest. Over the course of 30 years they made monthly payments of $1163.14 on their mortgage until it was paid off. (a) What was the total amount they ended up paying for the house (including the down payment and monthly payments)? (b) How much interest did they pay on the mortgage?

Answer 1

(a) The total amount they ended up paying for the house is the sum of the down payment and the total mortgage payments.

The amount of the mortgage is the difference between the cost of the house and the down payment:

$239,000 - $45,000 = $194,000

The total mortgage payments can be found by multiplying the monthly payment by the number of payments:

$1163.14 x 12 x 30 = $419,930.40

So the total amount they paid for the house is:

$45,000 + $419,930.40 = $464,930.40

Therefore, the Griffins paid a total of $464,930.40 for the house.

(b) The interest paid on the mortgage can be found by subtracting the amount borrowed from the total amount paid, and then subtracting the down payment:

$464,930.40 - $45,000 - $194,000 = $225,930.40

So the Griffins paid $225,930.40 in interest on their mortgage over 30 years.