The average purchase price of a single-family home is $505,750, according to the U.S. Census Bureau

The average purchase price of a single-family home is $505,750, according to the U.S. Census Bureau.

The mortgage on a $500,000 house is $2,952 per month toward your mortgage principal & mortgage interest, assuming a 6.86% interest rate and a 30-year fixed term with 10% down.

Have a seat and grab a beverage — the cost of being "average" in the U.S. housing market might be tough to swallow. Here’s the total cost of principal and interest payments for a mortgage on a $500,000 house, broken down by two popular mortgage loan terms.

30-Year Fixed-Rate Mortgage

• Lifetime cost over 30 years: $1,062,601.49
• Total interest paid: $612,601.49
• Assumes 10% down, 6.86% interest rate

15-Year Fixed-Rate Mortgage

• Lifetime cost over 15 years: $690,545.58
• Total interest paid: $240,545.58
• Assumes 10% down, 6.16% interest rate

As you can see, there’s significant cost savings with a 15-year mortgage. These mortgages tend to have lower interest rates than 30-year terms. The shorter loan term also means a quicker payoff, significantly reducing your total interest paid. You could save even more on interest if you qualify for VA or FHA loans, which often have lower interest rates.

Dig Deeper: 15-Year vs. 30-Year Mortgage — How to Decide Which Is Better

How Much Is a $500,000 Mortgage Monthly?
Your monthly principal and interest payment on a $500,000 mortgage will depend on three main factors: mortgage type, interest rate, and term length. Here’s what your payment might look like each month based on three popular types of mortgages:

• Conventional Mortgages: 7% interest rate
• FHA Mortgages: 6.5% interest rate
• VA Mortgages: 6% interest rate

These rates reflect the fact that FHA rates are usually lower than conventional ones, and VA rates are typically the lowest of the three.