A $600,000 mortgage at 5.5% interest for 30 years has a monthly payment of $3,407 in principal and interest. Over the life of the loan, you will pay $626,424 in total interest, making the total cost $1,226,424.

Key Numbers

• •Monthly payment (P&I): $3,407
• •Total interest over 30 years: $626,424
• •Total cost of the loan: $1,226,424
• •A 15-year term at the same rate costs $4,903/month but saves $343,974 in interest
• •With a 20% down payment, the home price would be $750,000