You can afford a $700 per month mortgage payment. You've found a 30 year loan at 5% interest.

a.) How big of a loan can you afford?

b.) How much total money will you pay the loan company?

c.) How much of that money is interest?

P=loan (present value)

i=interest rate = 5%/12=0.05/12

n=30 years = 360 months

A=amount each payment = 700

then by the amortization formula,

P=A ((i+1) ^n-1) / (i * (1+i) ^n)

=700 ((1+.05/12) ^360-1) / ((.05/12) * (1+.05/12) ^360)

=130397.13

Total money = 700*360=252000

Interest=252000-130397.13=121502.87 (almost 50%).