A $250,000 mortgage at 7% interest for 30 years has a monthly payment of $1,663 in principal and interest. Over the life of the loan, you will pay $348,772 in total interest, making the total cost $598,772.

Key Numbers

• •Monthly payment (P&I): $1,663
• •Total interest over 30 years: $348,772
• •Total cost of the loan: $598,772
• •A 15-year term at the same rate costs $2,247/month but saves $194,300 in interest
• •With a 20% down payment, the home price would be $312,500