A $700,000 mortgage at 6% interest for 30 years has a monthly payment of $4,197 in principal and interest. Over the life of the loan, you will pay $810,867 in total interest, making the total cost $1,510,867.

Key Numbers

• •Monthly payment (P&I): $4,197
• •Total interest over 30 years: $810,867
• •Total cost of the loan: $1,510,867
• •A 15-year term at the same rate costs $5,907/month but saves $447,608 in interest
• •With a 20% down payment, the home price would be $875,000