A $500,000 mortgage at 6% interest for 30 years has a monthly payment of $2,998 in principal and interest. Over the life of the loan, you will pay $579,191 in total interest, making the total cost $1,079,191.

Key Numbers

• •Monthly payment (P&I): $2,998
• •Total interest over 30 years: $579,191
• •Total cost of the loan: $1,079,191
• •A 15-year term at the same rate costs $4,219/month but saves $319,720 in interest
• •With a 20% down payment, the home price would be $625,000