What's in a monthly mortgage payment?
A mortgage payment is often called PITI: Principal, Interest, Taxes and Insurance. The principal and interest come from the loan amount (home price minus down payment) amortized over the term. Property tax and homeowner's insurance are usually collected monthly and held in escrow.
Why the total interest is eye-opening
Over 30 years, interest can approach or exceed the original loan amount. A larger down payment, a shorter term, or a slightly lower rate can each save tens of thousands. This tool shows the lifetime interest so the trade-offs are visible.
Frequently asked questions
Does this include PMI or HOA fees?
No — private mortgage insurance (common with under 20% down) and any HOA dues would add to the monthly figure.
15-year vs 30-year?
15-year loans have higher monthly payments but much lower total interest and often a better rate. Try both terms to compare.