A $500,000 mortgage at 6.5% interest for 15 years has a monthly payment of $4,356 in principal and interest. Over the life of the loan, you will pay $283,997 in total interest, making the total cost $783,997.

Key Numbers

• •Monthly payment (P&I): $4,356
• •Total interest over 15 years: $283,997
• •Total cost of the loan: $783,997
• •Compared to a 30-year term at the same rate, you save $353,726 in total interest
• •With a 20% down payment, the home price would be $625,000