Ever wonder how much a house “actually” costs? Consider Alex and Sabrina who purchased a house with a selling price of $249,000.00. They managed to put 15% down and were approved for a 30-year conventional loan at 7% to cover the remaining $211,650.00. Their new monthly mortgage payment, which combines principal and interest payments, is $1407.47. They also paid an additional 2 points at closing (points are considered prepaid interest or interest paid up front).
How much will Alex and Sabrina really end up paying for their house over the next 30 years (including points, down payment, principal, and interest)?
How much of the total cost of the house after 30 years is interest?
How much of the 1st mortgage payment is interest and how much is principal?
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