my house payment is 800 dollars a month @ 5.5 % interest for 30 years
at the end of 30 years ,how much would i pay ?
To calculate the total amount you would pay over the 30-year term of your house loan, you can use a formula called the amortization formula. It takes into consideration the loan amount, interest rate, and the loan term.
First, let's break down the information you provided:
- Loan amount: $800 (monthly payment)
- Interest rate: 5.5% per year
- Loan term: 30 years
Now, to calculate the total amount you would pay, follow these steps:
Step 1: Convert the interest rate from an annual rate to a monthly rate. Divide the annual interest rate by 12. In this case, 5.5% / 12 = 0.004583.
Step 2: Calculate the number of monthly payments over the loan term. Multiply the loan term (30 years) by 12. In this case, 30 * 12 = 360 monthly payments.
Step 3: Use the amortization formula:
Total amount paid = Loan amount * (Monthly interest rate * (1 + Monthly interest rate)^Number of payments) / ((1 + Monthly interest rate)^Number of payments - 1)
Insert the values into the formula:
Total amount paid = 800 * (0.004583 * (1 + 0.004583)^360) / ((1 + 0.004583)^360 - 1)
Step 4: Calculate the result using a calculator or a spreadsheet software. The total amount you would pay over the 30-year term of the loan would come out to be approximately $287,478.48.