A $400,000 mortgage at 6% interest for 30 years has a monthly payment of $2,398 in principal and interest. Over the life of the loan, you will pay $463,353 in total interest, making the total cost $863,353.

Key Numbers

• •Monthly payment (P&I): $2,398
• •Total interest over 30 years: $463,353
• •Total cost of the loan: $863,353
• •A 15-year term at the same rate costs $3,375/month but saves $255,776 in interest
• •With a 20% down payment, the home price would be $500,000