Solution and Explanation:
The total amount repaid by the Hills towards their 30 year $144,000 conventional mortgage at 4.5 % is [tex]12 * 30 * \$ 729.63=\$ 262666.80[/tex]
Additionally, the Hills also pay 2 points at closing. Since 2 mortgage points are equivalent to 2 % of the mortgage amount i.e. [tex](2 / 100) * \$ 144000=\$ 2880[/tex]hence the total amount repaid by the Hills is [tex]\$ 262666.80+\$ 2880=\$ 265546.80[/tex]
Thus the total amount that the Hills will pay for their house over 30 years is [tex]\$ 265546.80-\$ 144000=\$ 121546.80[/tex].
Answer:
301,546.80
Explanation:
The Hill's pay a down payment of $180,000 - $144,000= $36,000,
$144,000 x (0.02)= $2880 in points, and $729.63 x (12) x (30) = $262,666.80 in monthly payments.
$36,000 + $2880 + $262,666.80= $301,546.80
