The mortgage on your new home is 199051 The loan is at 60 in

The mortgage on your new home is $199,051. The loan is at 6.0% interest for 30 years. How much interest will you pay to the bank if you make payments for the full 30 years?

Solution

Answer = $230577.07

Explanation:

If you borrow $199,051 at 6.00% for 30 years, your monthly payment will be $1,193.41(you can calculate it using any mortgage loan calculator available online) and you will pay a total of $230,577.07 over the term of the loan.

It’s important to note that in most cases, your monthly loan payments do not change over time. The loan “amortizes” over the repayment period, meaning the proportion of interest paid vs. principal repaid changes each month. As the loan amortizes, the amount of monthly interest paid decreases while the amount of principal paid increases.

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