A $200,000 mortgage at 5.5% interest for 30 years has a monthly payment of $1,136 in principal and interest. Over the life of the loan, you will pay $208,808 in total interest, making the total cost $408,808.

Key Numbers

• •Monthly payment (P&I): $1,136
• •Total interest over 30 years: $208,808
• •Total cost of the loan: $408,808
• •A 15-year term at the same rate costs $1,634/month but saves $114,658 in interest
• •With a 20% down payment, the home price would be $250,000