Question

The Wong family bought a $190,000 home in 2001. They obtained a mortgage loan for 30 years. The monthly payment, not including property taxes and insurance, is $995. How much total principal and interest will they pay for the house after 30 years?

Answer 1

Since there is no interest rate for the transaction, the number of months in 30 years = 12 x 30 = 360. Total amount paid = 995 x 360 = $358,200. Therefore, at the end of 30 years they must have paid a total of $358,200. Thus, the total interest paid is $358,200 - $190,000 = $168,000.