A $400,000 mortgage at 6.5% interest for 30 years has a monthly payment of $2,528 in principal and interest. Over the life of the loan, you will pay $510,178 in total interest, making the total cost $910,178.

Key Numbers

• •Monthly payment (P&I): $2,528
• •Total interest over 30 years: $510,178
• •Total cost of the loan: $910,178
• •A 15-year term at the same rate costs $3,484/month but saves $282,981 in interest
• •With a 20% down payment, the home price would be $500,000