A $150,000 mortgage at 7% interest for 30 years has a monthly payment of $998 in principal and interest. Over the life of the loan, you will pay $209,263 in total interest, making the total cost $359,263.

Key Numbers

• •Monthly payment (P&I): $998
• •Total interest over 30 years: $209,263
• •Total cost of the loan: $359,263
• •A 15-year term at the same rate costs $1,348/month but saves $116,580 in interest
• •With a 20% down payment, the home price would be $187,500