A $400,000 mortgage at 6.5% interest for 15 years has a monthly payment of $3,484 in principal and interest. Over the life of the loan, you will pay $227,197 in total interest, making the total cost $627,197.

Key Numbers

• •Monthly payment (P&I): $3,484
• •Total interest over 15 years: $227,197
• •Total cost of the loan: $627,197
• •Compared to a 30-year term at the same rate, you save $282,981 in total interest
• •With a 20% down payment, the home price would be $500,000