A $500,000 mortgage at 6% interest for 15 years has a monthly payment of $4,219 in principal and interest. Over the life of the loan, you will pay $259,471 in total interest, making the total cost $759,471.

Key Numbers

• •Monthly payment (P&I): $4,219
• •Total interest over 15 years: $259,471
• •Total cost of the loan: $759,471
• •Compared to a 30-year term at the same rate, you save $319,720 in total interest
• •With a 20% down payment, the home price would be $625,000