A $600,000 mortgage at 7% interest for 30 years has a monthly payment of $3,992 in principal and interest. Over the life of the loan, you will pay $837,053 in total interest, making the total cost $1,437,053.

Key Numbers

• •Monthly payment (P&I): $3,992
• •Total interest over 30 years: $837,053
• •Total cost of the loan: $1,437,053
• •A 15-year term at the same rate costs $5,393/month but saves $466,319 in interest
• •With a 20% down payment, the home price would be $750,000