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The Scotts bought a \( \$ 241,000 \) 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 \( \$ 1620.22 \) on their mortgage until it was paid off. (a) What was the total amount they ended up paying for the house (including the down payment and monthly payments)? (b) How much interest did they pay on the mortgage?

Ask by Greene Norton. in the United States
Mar 10,2025

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Answer

(a) The Scotts paid a total of \$340,639.60 for the house. (b) They paid approximately \$99,639.60 in interest on the mortgage.

Solution

1. The total purchase price of the house is \[ \$241{,}000. \] They made a down payment of \[ \$49{,}000. \] The amount financed by the mortgage is then \[ 241{,}000 - 49{,}000 = \$192{,}000. \] 2. They made monthly payments of \[ \$1{,}620.22 \] for 15 years. Since there are 12 months in a year, the total number of monthly payments is \[ 15 \times 12 = 180. \] The total amount paid in monthly payments is \[ 1{,}620.22 \times 180 = \$291{,}639.60. \] 3. (a) The total amount paid for the house, including the down payment, is \[ 49{,}000 + 291{,}639.60 = \$340{,}639.60. \] 4. (b) The total interest paid on the mortgage is the total of the monthly payments minus the mortgage principal: \[ 291{,}639.60 - 192{,}000 = \$99{,}639.60. \] Thus, the final answers are: (a) The Scotts paid a total of \( \$340{,}639.60 \). (b) They paid approximately \( \$99{,}639.60 \) in interest on the mortgage.

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To find the total amount the Scotts paid for the house, we can start by calculating the total of their monthly payments over 15 years. Since they made monthly payments of \( \$ 1620.22 \): Total payment over 15 years = \( 1620.22 \times 12 \times 15 = 1620.22 \times 180 = \$291,637.60 \) Now, we add the down payment of \( \$ 49,000 \): Total amount paid = Down payment + Total monthly payments = \( 49,000 + 291,637.60 = \$340,637.60 \) To find out how much interest they paid on the mortgage, we need to subtract the original mortgage amount from the total amount they ended up paying: Original mortgage amount = Price of the house - Down payment = \( 241,000 - 49,000 = \$192,000 \) Interest paid = Total amount paid - Original mortgage amount = \( 340,637.60 - 192,000 = \$148,637.60 \) (a) The total amount they ended up paying for the house is \( \$340,637.60 \). (b) They paid \( \$148,637.60 \) in interest on the mortgage.

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