Newlyweds Eric and Pamela have finally found the house that they have been looki
ID: 2668205 • Letter: N
Question
Newlyweds Eric and Pamela have finally found the house that they have been looking for and are anxious to make an offer.The 3 bedroom house is on the market for $156,100 and will require that the couple complete some repairs such as installing a new roof and replacing the deck in the back of the house.
They estimate these repairs at about $15,000. The house is currently assessed at $150,000, however the real estate agent is confident that if they make the repairs, the market value of the house would increase to $175,000.
Find the total amount of interest that Eric and Pamela will pay over the 30 years of the mortgage.
Answer:
Thank you mortgage finance expert!
Explanation / Answer
Based on the answer to #1, the payment was 887.25 and the mortgage amount was 144,100. So the amount of interest will be 887.25*360- 144,100= 175,310.