Where: M = Monthly payment, P = Principal, r = Monthly interest rate, n = Number of payments
The original loan amount, not including interest. With a down payment, the principal is reduced.
The total amount of interest paid over the life of the loan. Shorter terms mean less interest paid.
Principal + Total Interest = Total amount you'll pay for the home.
| Loan Amount | Rate | Term | Monthly | Total Interest |
|---|---|---|---|---|
| $300,000 | 6.5% | 30 years | $1,896 | $382,561 |
| $300,000 | 6.5% | 15 years | $2,614 | $170,498 |
| $300,000 | 5.5% | 30 years | $1,703 | $313,017 |