US mortgage guide
What is included in a US mortgage payment?
A lender's principal-and-interest payment is not always the full monthly cost of owning the home.
In short
Budget separately for property tax, homeowners insurance, HOA fees and potentially private mortgage insurance (PMI). Some lenders collect tax and insurance through escrow; others may show them separately.
Principal and interest
Principal reduces the amount borrowed. Interest is the lender's charge for the loan. A fixed-rate repayment schedule usually has more interest in the earlier payments and more principal later on.
Taxes, insurance and HOA fees
Property taxes and insurance can change over time. HOA fees apply only to some properties, but can be a significant recurring cost. These items are not part of the loan balance, even if a lender collects them monthly.
PMI and lender costs
PMI may apply when the down payment is below a lender's threshold. Closing costs, lender fees and maintenance are also outside a simple mortgage-payment calculation.
Use the US mortgage calculator to combine principal and interest with optional property tax, insurance and HOA figures. It is a planning estimate, not a loan offer or financial advice.