How does a Mortgage work? - Newbie

[Mike Rodriguez]

Hi All! Can someone please clarify this for me? 

Let's say the purchase price of a house is 200,000. I put 20% down that's $40,000 so my loan would be for $160,000.

Let's say it's a 30 year fixed at 4%.

This means :

$763.86 Monthly Payment $114,991 Total Interest Paid

$274,991 Total of 360 Payments Apr, 2050

Let's say 1 year into it, I want to sell the house. Does this mean I have to sell the house for more than $274,991 to make money? Is this how all mortgages are? We're borrowing more than the value of the house? I'm so lost!

Please help clarify this for me.