The Hills obtain a​ 30-year, $144,000 conventional mortgage at a​ 4.5% rate on a house selling for​ $180,000. Their monthly mortgage​ payment, including principal and​ interest, is​ $729.63. They also pay 2 points at closing. Determine the total amount the Hills will pay for their house over 30 years. The total amount is ​$ round to nearest cent

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Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.