Costs · 2 MIN READ
What goes into your monthly payment?
The loan payment is one part of owning a home.
Principal and interest
Principal repays the loan balance. Interest is the cost of borrowing. For a fixed-rate amortizing loan, the combined principal-and-interest payment is generally scheduled to stay the same, but the amounts going to each change over time.
Taxes and insurance
Property taxes and homeowners insurance may be collected through escrow. These costs can change. Mortgage insurance and homeowners association dues may add to your monthly obligations.
Leave room outside the payment
Budget separately for utilities, repairs, maintenance, and costs that are not escrowed. In the calculator, enter the costs relevant to your property rather than treating sample amounts as a quote.
Further reading: CFPB: Loan Estimate explainer. Reviewed September 12, 2026. General education; program and lender requirements vary.