The cost of a mortgage depends on the amount you borrow, the interest you pay, and how long you take to repay.
Since monthly payments spread the cost of a mortgage over a long period of time, it's easy to forget the total expense. For example, if you borrow $100,000 for 30 years at 6.5% interest, your total repayment will be around $227,545, more than two and a quarter times the original loan.
Minor differences in the interest rate — 6.5% vs. 6% — can add up to a lot of money over 30 years. At 6% the total repaid would be $215,842 about $11,703 less than at the 6.5% rate. Of course, many borrowers refinance or sell before the end of the loan term, so the differences between the rates are less dramatic.
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