Understanding your mortgage
Principal: The amount borrowed (home price minus down payment). This is what you actually owe the lender.
Interest: The fee charged for borrowing. Over a 30-year loan, total interest can sometimes equal or exceed the original loan amount.
Down Payment: Upfront cash toward the purchase. 20% avoids PMI, but many loans allow 3-5% down.
Compare multiple scenarios using our Loan Comparison Calculator to find which terms save you the most.