A $200,000 mortgage at 6% interest for 30 years has a monthly payment of $1,199 in principal and interest. Over the life of the loan, you will pay $231,676 in total interest, making the total cost $431,676.

Key Numbers

• •Monthly payment (P&I): $1,199
• •Total interest over 30 years: $231,676
• •Total cost of the loan: $431,676
• •A 15-year term at the same rate costs $1,688/month but saves $127,888 in interest
• •With a 20% down payment, the home price would be $250,000