A $450,000 mortgage at 6.5% interest for 30 years has a monthly payment of $2,844 in principal and interest. Over the life of the loan, you will pay $573,950 in total interest, making the total cost $1,023,950.

Key Numbers

• •Monthly payment (P&I): $2,844
• •Total interest over 30 years: $573,950
• •Total cost of the loan: $1,023,950
• •A 15-year term at the same rate costs $3,920/month but saves $318,353 in interest
• •With a 20% down payment, the home price would be $562,500