Question

The Hills obtain a​ 30-year, $144,000 conventional mortgage at a​ 4.5% rate on a house selling for​ $180,000. Their monthly mortgage​ payment, including principal and​ interest, is​ $729.63. They also pay 2 points at closing. Determine the total amount the Hills will pay for their house over 30 years.

Answer 1

301,546.80

Step-by-step explanation:

The​ Hill's pay a down payment of ​$180,000 ​- $144,000= ​$36,000, ​

$144,000 x ​(0.02)​= $2880 in​ points, and ​$729.63 x ​(12)​ x (30) = ​$262,666.80 in monthly payments.

​$36,000 + ​$2880 + ​$262,666.80​= $301,546.80