A $450,000 mortgage at 6% interest for 30 years has a monthly payment of $2,698 in principal and interest. Over the life of the loan, you will pay $521,272 in total interest, making the total cost $971,272.

Key Numbers

• •Monthly payment (P&I): $2,698
• •Total interest over 30 years: $521,272
• •Total cost of the loan: $971,272
• •A 15-year term at the same rate costs $3,797/month but saves $287,748 in interest
• •With a 20% down payment, the home price would be $562,500