You have decided to buy a house of your choice for $425,000 (inclusive of closing costs) by paying 5% as down payment and taking on a 30-year mortgage loan at 6.60% APR fixed and would making monthly payment at the start of each month starting now. How much total interest amount (rounded to the nearest dollar) would you be paying over the duration of the mortgage? Hint: To calculate the total interest paid over the duration of the mortgage, use the following formula:

Total interest = (PMT x 12 x Loan Term) - Loan Amount

Where:

PMT: monthly mortgage payment (annuity)

Loan term: total number of payments (loan term in years multiplied by 12)

Loan amount: initial loan amount (purchase price minus down payment)

Calculate PMT using the following formula:

PMT = (PVA*i/n) / [1-(1+i/n)^nt ]

Where: PMT = monthly mortgage (annuity) payment

PVA = present value of annuity (loan amount = purchase price - down payment)

I = monthly interest rate (annual APR divided by 12)

N = total number of payments per year

T = total number of payments (loan term in years * 12)

Given the following information:

Purchase price - $425,000

Down payment = 5% of $425,000 = $21,250

Loan amount (PVA) = $425,000 - $21,250 = $403,750

Annual interest rate = 6.60%

Loan term (t) = 30 years

Monthly interest rate (i) = 6.60% / 12 / 100 = 0.0055

Once PMT using the loan payment formula is calculate, substitute these values into the total interest formula

Total interest amount = (PMT x 12 x 20) - 403,750