A $700,000 mortgage at 6.5% interest for 30 years has a monthly payment of $4,424 in principal and interest. Over the life of the loan, you will pay $892,811 in total interest, making the total cost $1,592,811.

Key Numbers

• •Monthly payment (P&I): $4,424
• •Total interest over 30 years: $892,811
• •Total cost of the loan: $1,592,811
• •A 15-year term at the same rate costs $6,098/month but saves $495,216 in interest
• •With a 20% down payment, the home price would be $875,000