A $150,000 mortgage at 5.5% interest for 30 years has a monthly payment of $852 in principal and interest. Over the life of the loan, you will pay $156,606 in total interest, making the total cost $306,606.

Key Numbers

• •Monthly payment (P&I): $852
• •Total interest over 30 years: $156,606
• •Total cost of the loan: $306,606
• •A 15-year term at the same rate costs $1,226/month but saves $85,994 in interest
• •With a 20% down payment, the home price would be $187,500