To determine how much money will be spent in interest alone over the course of a 30-year mortgage with a 3.5% interest rate, we can follow these steps:
1. Identify the Given Information:
- Principal (the initial loan amount): \[tex]$210,000.00
- Monthly payment for the 3.5% interest rate: \$[/tex]943
- Mortgage term: 30 years
2. Calculate the Total Amount Paid Over the Life of the Mortgage:
- Monthly payments: \[tex]$943
- Number of payments per year: 12
- Number of years: 30
To find the total amount paid:
\[
\text{Total Amount Paid} = \text{Monthly Payment} \times \text{Number of Payments per Year} \times \text{Number of Years}
\]
Substituting the given values:
\[
\text{Total Amount Paid} = 943 \times 12 \times 30 = 339,480
\]
3. Calculate the Amount Spent on Interest:
- We know the total amount paid over the life of the mortgage.
- We also know the original principal.
To find the amount spent on interest:
\[
\text{Amount Spent on Interest} = \text{Total Amount Paid} - \text{Principal}
\]
Substituting the values:
\[
\text{Amount Spent on Interest} = 339,480 - 210,000 = 129,480
\]
Therefore, the amount of money that will be spent in interest alone over the course of the 3.5% 30-year mortgage is \$[/tex]129,480.00.
