A $200,000 mortgage at 6.5% interest for 30 years has a monthly payment of $1,264 in principal and interest. Over the life of the loan, you will pay $255,089 in total interest, making the total cost $455,089.

Key Numbers

• •Monthly payment (P&I): $1,264
• •Total interest over 30 years: $255,089
• •Total cost of the loan: $455,089
• •A 15-year term at the same rate costs $1,742/month but saves $141,490 in interest
• •With a 20% down payment, the home price would be $250,000