A $700,000 mortgage at 7% interest for 30 years has a monthly payment of $4,657 in principal and interest. Over the life of the loan, you will pay $976,562 in total interest, making the total cost $1,676,562.

Key Numbers

• •Monthly payment (P&I): $4,657
• •Total interest over 30 years: $976,562
• •Total cost of the loan: $1,676,562
• •A 15-year term at the same rate costs $6,292/month but saves $544,039 in interest
• •With a 20% down payment, the home price would be $875,000