Understanding your mortgage payment
A mortgage is a long-term amortizing loan secured against your home. This tool calculates the principal-and-interest portion of your monthly payment based on the amount you borrow (the home price minus your down payment), the interest rate, and the term. A larger down payment reduces the amount you borrow and therefore both your monthly payment and the total interest you pay.
What is not included
Your real monthly housing cost usually also includes property taxes, homeowner's insurance, and — if your down payment is below about 20% — private mortgage insurance (PMI). Homeowners association (HOA) dues may apply too. These vary widely by country, state, and property, so treat the figure here as the loan portion only.
How term length affects cost
A 30-year mortgage has a lower monthly payment than a 15-year one, but you pay interest for twice as long, so the total interest is much higher. Try switching the term between 15, 20, and 30 years to see the trade-off between monthly affordability and lifetime cost.