A $600,000 mortgage at 6.5% interest for 30 years has a monthly payment of $3,792 in principal and interest. Over the life of the loan, you will pay $765,267 in total interest, making the total cost $1,365,267.

Key Numbers

• •Monthly payment (P&I): $3,792
• •Total interest over 30 years: $765,267
• •Total cost of the loan: $1,365,267
• •A 15-year term at the same rate costs $5,227/month but saves $424,471 in interest
• •With a 20% down payment, the home price would be $750,000