# Actual overall cost of \$120,000 30-yr mortgage?

I just read something where a man claimed that his \$160,000 mortgage loan at 4.29% interest will cost him over \$500,000 when the debt is finally paid off. I believe this was a 30-year loan he was referring to. I feel like a terrible & uninformed consumer, but I never realized I might be paying out a ton of extra money on my own \$120,000 30-year mortgage at 5%. The idea that I might end up actually paying out more like a half-million dollars is sickening.

Does anyone know how I might be able to calculate our actual payment, after all is said and done? Or is there an online tool or calculator I might be able to use that would generate a figure? Thank you.

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## 7 thoughts on “Actual overall cost of \$120,000 30-yr mortgage?”

1. Did you truly believe the lender would not charge you for using their money for 30 years?
that is why the Larger the Down payment the better off you are. 6000 a yr time 30 Not bad just 180k in interest. Suggest you add at least an extra principle payment of 100 each month. This will save you thousands

2. What you are talking about is called loan amortization.
Here’s a loan calcualotr that shows an amortization schedule.

scroll toward the middle of the page and click on “Show/Recalculate Amortization Table”.

Scroll down and you’ll see the results.

3. lol, what did you expect from a loan like this? all loans have interest, and it’s in your best interest to get it paid off as fast as humanly possible. just think about the initial first “payments” on a typical mortgage, pretty much 99% of that payment is going toward the interest and 1% is actually paying off the principal. this is why minimum payments are suicide. save up as much as humanly possible before buying anything.

4. If you take your payments by the months you have left, that will show you the total you will pay. On a \$160,000 dollar loan at 4.29%, your monthly payment would be \$790.86. You times that by 360 months (30 Years), if you have the loan that long, the total would be \$284,709.60. \$500k is way to high based on the term and the rate. Mortgage loans have a lot of interest paid in the first 10 years due to the length of time the money is loaned out for but this allows you to borrow thousands at a much lower and affordable payment. If you can pay even \$100 extra per month to this example loan, you would save almost 6 years or over \$56,000 in payments!
On a loan of 120,000, 5%, on a 30 year, you will pay \$231,904.80 total. That extra \$100 will save you 92 months or \$59,264.56 in total payments.

5. The numbers you mentioned do not compute. A \$120,000 mortgage at a 5% fixed rate over 30 years will cost you approximately \$112,000 over the life of the loan. Your monthly payment will be approximately \$645. This does not include property taxes, insurance, maintenance or repairs. At the end of thirty years you will own property that has significantly appreciated in value. It’s more likely that you will trade up along the way and maximize your investment even more.

If you were to rent property for \$645/month for 30 years you will have spent over \$232,000 and have nothing to show for it. It’s more likely that you would have to spend at least \$900/month for a comparable rental to cover the landlord’s property expenses over and above his mortgage costs. That’s \$324,000 thrown down the toilet. On top of that, you can expect numerous rent increases over a span of 30 years. That \$324,000 figure is liable to be closer to half a million dollars.

There are many on-line mortgage calculators. Just Google “mortgage cost calculator” and plug in your numbers.

6. In addition to what the other people have said. Have you compared your house payment to what you would pay in rent? My house payment is less than rent would be on the same house. After 30 years of rent I own nothing. After 30 years of house payment I would own a house free and clear. If you are not able to pay extra every month I would not worry to much.

7. Even with an impound account to cover taxes and insurance as well as the basic mortgage expense, that \$500,000 figure is way out of whack. Use an online mortgage calculator to figure out the costs for your scenario. \$112,000 is about right for interest on \$120K at 5% for 30 yrs.