A Minnesota buyer obtains a $300,000 mortgage at 6% for 30 years. Using the payment factor of $6.00 per $1,000, what are the total interest payments over the life of the loan?

Explanation

Monthly P&I = ($300,000 / $1,000) x $6.00 = $1,800. Total payments = $1,800 x 360 months = $648,000. Total interest = $648,000 - $300,000 principal = $348,000. Approximately $360,000. Understanding total interest paid over a mortgage term helps Minnesota homebuyers evaluate the true cost of borrowing and consider options like making extra principal payments.