A $450,000 mortgage at 7% interest for 30 years has a monthly payment of $2,994 in principal and interest. Over the life of the loan, you will pay $627,790 in total interest, making the total cost $1,077,790.

Key Numbers

• •Monthly payment (P&I): $2,994
• •Total interest over 30 years: $627,790
• •Total cost of the loan: $1,077,790
• •A 15-year term at the same rate costs $4,045/month but saves $349,739 in interest
• •With a 20% down payment, the home price would be $562,500