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A full mortgage payment typically includes four components known as PITI: Principal (repaying the loan), Interest (cost of borrowing), Taxes (property taxes escrowed monthly), and Insurance (homeowner's insurance). PMI may also be added if your down payment is less than 20%.

A larger down payment reduces your loan amount, lowering both your monthly payment and total interest paid. It can also help you avoid Private Mortgage Insurance (PMI), which is typically required when the down payment is less than 20% of the home price.

The interest rate is the cost of borrowing the principal loan amount. APR (Annual Percentage Rate) is a broader measure that includes the interest rate plus fees and other costs. APR gives a more complete picture of the true cost of a mortgage.

A 15-year mortgage has higher monthly payments but significantly lower total interest paid — often saving tens of thousands of dollars. A 30-year mortgage has lower monthly payments, providing more cash flow flexibility. The right choice depends on your budget and financial goals.

Yes. Making extra payments toward the principal can dramatically reduce your loan term and total interest. Even one extra payment per year can shorten a 30-year mortgage by several years. Check your loan agreement for prepayment penalties before doing so.