A $500,000 mortgage at 5.5% interest for 30 years has a monthly payment of $2,839 in principal and interest. Over the life of the loan, you will pay $522,020 in total interest, making the total cost $1,022,020.

Key Numbers

• •Monthly payment (P&I): $2,839
• •Total interest over 30 years: $522,020
• •Total cost of the loan: $1,022,020
• •A 15-year term at the same rate costs $4,085/month but saves $286,645 in interest
• •With a 20% down payment, the home price would be $625,000