How your monthly mortgage payment is worked out.

The parts of the payment

• Principal pays down what you borrowed.
• Interest is the cost of borrowing, charged on the remaining balance.
• Property tax and homeowners insurance are often collected monthly by the lender in an escrow account and paid for you.
• HOA or other fees apply to some properties.

Many borrowers who put down less than 20% also pay mortgage insurance. Ask your lender whether it applies.

Estimate your own payment

Open the Mortgage calculator, enter the home price, down payment, rate and term in years, then add yearly property tax, insurance and any monthly fees. You will see the full monthly payment, the part that repays the loan and total interest over the term.

Why the payment can change

If your payment includes an escrow account, a change in property tax or insurance can raise or lower it. The U.S. Consumer Financial Protection Bureau explains this in why a monthly mortgage payment can go up or change.

Compare real offers

Before you commit, compare the official Loan Estimate from each lender, and check your final numbers with the Closing Disclosure. The CFPB has a Closing Disclosure explainer that helps you spot errors. To compare two loan offers side by side, use Loan comparison.

Calculators give estimates. Your lender’s documents show the real figures.