A $400,000 home at 6% interest will cost a buyer over $690,000 in total, and an FHA loan with a lower down payment results in a final cost of over $833,000. This is due to the way mortgages extend payments over 30 years, benefiting lenders while inflating home prices. While monthly payments are higher for a 15-year mortgage compared to a 30-year loan, the interest rate is typically lower, and you’ll pay off the loan in half the time, which saves a significant amount of interest over the life of the loan. A 15-year mortgage on a 400k purchase with 20% down at 5% delivers a total cost of $535k. A 30-year mortgage on the same house at 6% costs a total of $770k….$235k more! That’s a $612 per month payment difference…. (WSJ)

10/11/2025