A $400,000 mortgage at 6% interest for 15 years has a monthly payment of $3,375 in principal and interest. Over the life of the loan, you will pay $207,577 in total interest, making the total cost $607,577.

Key Numbers

• •Monthly payment (P&I): $3,375
• •Total interest over 15 years: $207,577
• •Total cost of the loan: $607,577
• •Compared to a 30-year term at the same rate, you save $255,776 in total interest
• •With a 20% down payment, the home price would be $500,000