A $150,000 mortgage at 6.5% interest for 30 years has a monthly payment of $948 in principal and interest. Over the life of the loan, you will pay $191,317 in total interest, making the total cost $341,317.

Key Numbers

• •Monthly payment (P&I): $948
• •Total interest over 30 years: $191,317
• •Total cost of the loan: $341,317
• •A 15-year term at the same rate costs $1,307/month but saves $106,118 in interest
• •With a 20% down payment, the home price would be $187,500