A $250,000 mortgage at 6.5% interest for 30 years has a monthly payment of $1,580 in principal and interest. Over the life of the loan, you will pay $318,861 in total interest, making the total cost $568,861.

Key Numbers

• •Monthly payment (P&I): $1,580
• •Total interest over 30 years: $318,861
• •Total cost of the loan: $568,861
• •A 15-year term at the same rate costs $2,178/month but saves $176,863 in interest
• •With a 20% down payment, the home price would be $312,500