A $350,000 mortgage at 5.5% interest for 30 years has a monthly payment of $1,987 in principal and interest. Over the life of the loan, you will pay $365,414 in total interest, making the total cost $715,414.

Key Numbers

• •Monthly payment (P&I): $1,987
• •Total interest over 30 years: $365,414
• •Total cost of the loan: $715,414
• •A 15-year term at the same rate costs $2,860/month but saves $200,652 in interest
• •With a 20% down payment, the home price would be $437,500