You found a better deal on a different house, so you decide not to spend $1 million. Instead, you are going to buy a $750,000 house. This time your down payment is $120,000. You compare a 15-year mortgage and a 30-year mortgage, both with a 6% fixed nominal interest rate (APR), compounded monthly.

While the payment on the 15-year mortgage is higher than that of the 30-year mortgage, you make half the number of payments and pay a lot less in interest.

How much total interest will you save if you take out the 15-year mortgage instead of the 30-year mortgage?