Mortgages

A mortgage is a loan secured by a home. It follows the same amortization math as other installment loans, but the size and 15- to 30-year terms make small differences in rate or term add up to large differences in total cost. The monthly payment often bundles principal and interest with property taxes and insurance in an escrow account.

The guides here explain how mortgage interest is calculated, what determines how much house a lender will finance, how refinancing replaces one loan with another, and how points, closing costs, and private mortgage insurance factor into the real price of a home.

The Mortgage, Home Affordability, Refinance, and Rent vs. Buy calculators put these concepts into numbers for a specific price, rate, and down payment.