So I have an iPhone 3G and I want to buy the new iPhone 4. Since I am a hardcore gamer I would love to buy this due to the fact that the Retina Display won me over due to Real Racing's demo. I also want the homescreen wallpaper and multitasking feature. Anyway, back on track, my contract expires in about a week and I wanted to know how much the iPhone 4 would cost after my contract expires. One of my friends said he got his for free when his contract expired. Is this true? Any helpful answers are great! Thanks.
Your friend is full of crap. Assuming you're in the US, it's $199 for 16GB and $299 for 32GB for full 2 year renewal.
One more question, does Facetime have a monthly fee? If so how much and do you know what the options are?
No, it's free, since it works over WiFi only for now. (If you have a portable hotspot you can use it on the go, of course.) Apple have to work out something with WT&T before it's available over 3G, so who knows if AT&T will charge separately for that.