A $200,000 mortgage at 7% interest for 30 years has a monthly payment of $1,331 in principal and interest. Over the life of the loan, you will pay $279,018 in total interest, making the total cost $479,018.

Key Numbers

• •Monthly payment (P&I): $1,331
• •Total interest over 30 years: $279,018
• •Total cost of the loan: $479,018
• •A 15-year term at the same rate costs $1,798/month but saves $155,440 in interest
• •With a 20% down payment, the home price would be $250,000