Mortgage Part 1
Imagine you just bought a house for $400,000 and made a 20% down payment.
Find the monthly payment on the mortgage at 5% over 30 years. Then multiply the monthly payment by the total number of payments to find the total amount of payments you make to the bank in paying off the loan. Now subtract the amount of the mortgage to find the total amount of interest you pay to the bank. How does that amount of interest compare to the original sale price of the house?
Find the monthly payment on the mortgage at 5% over 30 years. Then multiply the monthly payment by the total number of payments to find the total amount of payments you make to the bank in paying off the loan.
