Question:
❓If you take out a standard 30-year mortgage, about how much will you typically pay in interest over the life of the loan?
A) Around 20–30% of the purchase price
B) Around 40–50% of the purchase price
C) Around 80–100% of the purchase price
D) More than double the purchase price
Answer:
✅ C) Around 80–100% of the purchase price
Over a full 30-year mortgage, you typically pay roughly as much in interest as the home cost—around 80–100% of the price at moderate rates, and more than the price itself when rates are high.
Take a $300,000 home on a 30-year loan. The rate changes the true cost dramatically:
| Rate on a $300,000 home | Interest paid over 30 years | % of the price |
|---|---|---|
| 5% | ~$280,000 | ~93% |
| 6.5% | ~$380,000 | ~127% |
So “around 80–100%” is really the floor. At today’s higher rates, a $300,000 house can cost you closer to $680,000 once the interest is paid. Run the numbers before you call any loan “good debt.”
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