A $250,000 mortgage at 5.5% interest for 30 years has a monthly payment of $1,419 in principal and interest. Over the life of the loan, you will pay $261,010 in total interest, making the total cost $511,010.

Key Numbers

• •Monthly payment (P&I): $1,419
• •Total interest over 30 years: $261,010
• •Total cost of the loan: $511,010
• •A 15-year term at the same rate costs $2,043/month but saves $143,323 in interest
• •With a 20% down payment, the home price would be $312,500