A $400,000 mortgage at 5.5% interest for 30 years has a monthly payment of $2,271 in principal and interest. Over the life of the loan, you will pay $417,616 in total interest, making the total cost $817,616.

Key Numbers

• •Monthly payment (P&I): $2,271
• •Total interest over 30 years: $417,616
• •Total cost of the loan: $817,616
• •A 15-year term at the same rate costs $3,268/month but saves $229,316 in interest
• •With a 20% down payment, the home price would be $500,000