Question

The bells bought a $386,000 house. They made a down payment of $49,000 and took out a mortgage for the rest. Over the course of 15 years they made monthly payments of $2843.81 on their mortgage until it was paid off.

What was the total amount they ended up paying for the house (including the down payment and monthly payments)?

How much interest did they pay on the mortgage?

Answer 1

Explanation:

The total amount paid for the house is the sum of the down payment and the total amount paid for the mortgage.

The total amount paid for the mortgage can be calculated as follows:

Number of monthly payments = 15 years x 12 months/year = 180 months

Total amount paid for the mortgage = 180 x $2843.81 = $511,086.80

Therefore, the total amount paid for the house is:

$386,000 + $511,086.80 = $897,086.80

To calculate the amount of interest paid, we need to subtract the principal amount (the original amount borrowed) from the total amount paid for the mortgage.

Principal amount = Total amount borrowed - Down payment = $386,000 - $49,000 = $337,000

Total interest paid = Total amount paid for the mortgage - Principal amount = $511,086.80 - $337,000 = $174,086.80

Therefore, they paid a total of $897,086.80 for the house, and they paid $174,086.80 in interest on their mortgage.