FRU News · How It Works

What goes into a mortgage payment?

What a mortgage payment is made of: the loan amount, the interest rate and the term, then principal and interest beside taxes and insurance.

42 sec · Captions available on the player · Presented by AI-generated presenters, with every line taken from the FreeRateUpdate page it answers.

Source: FreeRateUpdate mortgage calculator page

Transcript

This is FreeRateUpdate News. I'm Edmund Ledger. Let's look at what drives a mortgage payment. Our mortgage calculator needs three numbers: the loan amount, the interest rate and the term. From those, it works out principal and interest, the part that pays off the loan. A 15-year term means higher payments, but much less interest than a 30-year term. That figure leaves out property taxes, homeowners insurance, HOA dues and any mortgage insurance. Those vary by home and location, so our mortgage payment calculator adds them in. I'm Edmund Ledger, for FreeRateUpdate News.

Read the full answer · More FRU News videos

Mortgage and Home Equity Calculators

Estimate a payment before you talk to a lender. Each explains its math.

Mortgage Guides and Answers

The questions rate shoppers ask, and the explainers that go with them.

  • FAQ Answers to common mortgage and home equity questions, grouped by topic.
  • Blogs Longer explainers on buying, refinancing and borrowing against equity.
  • Is a Lender Legitimate? Check a company or loan officer in the free NMLS lookup.
  • Direct Lender or Broker? Who actually underwrites and funds your loan, and how to ask.

FreeRateUpdate Rates & Data

The rate and market data we publish, including figures measured from our own lender network and the consumers who shop rates here.

Current Mortgage Rates by Loan Type
Current Mortgage Rates by State

Ask Hope Anything About Mortgage & Home Equity!

Hope is AI and can make mistakes. Please double-check responses. About Hope * Advertising Disclosure