A $500,000 mortgage at 6.5% interest for 30 years has a monthly payment of $3,160 in principal and interest. Over the life of the loan, you will pay $637,722 in total interest, making the total cost $1,137,722.

Key Numbers

• •Monthly payment (P&I): $3,160
• •Total interest over 30 years: $637,722
• •Total cost of the loan: $1,137,722
• •A 15-year term at the same rate costs $4,356/month but saves $353,726 in interest
• •With a 20% down payment, the home price would be $625,000