While your monthly payments on a $500,000 mortgage with a 30-year term and a 4.59% APR are $2,547, the interest you’ll have paid by the end of the loan term totals $417,035.20 — or more than 80% of the original principal.
A 10-year mortgage will run you $123,182.80 in total interest, though the trade-off is monthly payments of $5,193. For further comparison, that’s roughly $67,000 less than interest you’ll pay on a 15-year mortgage.
Compared to a 30-year mortgage, you could save around $294,000 in interest on the same home with a 10-year mortgage.