A $300,000 mortgage at 6.5% interest for 30 years has a monthly payment of $1,896 in principal and interest. Over the life of the loan, you will pay $382,633 in total interest, making the total cost $682,633.

Key Numbers

• •Monthly payment (P&I): $1,896
• •Total interest over 30 years: $382,633
• •Total cost of the loan: $682,633
• •A 15-year term at the same rate costs $2,613/month but saves $212,235 in interest
• •With a 20% down payment, the home price would be $375,000