A $700,000 mortgage at 5.5% interest for 30 years has a monthly payment of $3,975 in principal and interest. Over the life of the loan, you will pay $730,828 in total interest, making the total cost $1,430,828.

Key Numbers

• •Monthly payment (P&I): $3,975
• •Total interest over 30 years: $730,828
• •Total cost of the loan: $1,430,828
• •A 15-year term at the same rate costs $5,720/month but saves $401,303 in interest
• •With a 20% down payment, the home price would be $875,000