How much will your home loan really cost each month?

Interest is charged on the remaining balance. At the start the balance is at its largest, so the interest share of each payment is too.

It is the yearly rate before monthly compounding. The calculator divides it by twelve to get the monthly rate.

Not exactly. Variable-rate loans, such as those tied to Euribor plus a margin, change their payment when the reference rate changes. Use the current total rate for an estimate.

It depends on the rate and the term: at 5 % over 30 years it is about 1,610 a month, three times the 100,000 figure in the table above. Enter your own numbers for the exact amount.

A shorter term costs much less interest but needs a higher payment. On 200,000 at 5 %, 15 years means 1,582 a month and about 85,000 in interest; 30 years means 1,074 a month and about 187,000.

An extra payment goes straight to the balance, so it saves the interest that money would have cost for the rest of the term. The calculator doesn't model extra payments: enter the lower balance and the years left to see the new payment.

No, it is principal and interest only. A US lender's monthly figure often adds property tax, home insurance and mortgage insurance (PITI); add those on top.

German and Austrian banks quote an initial repayment rate (Anfangstilgung) instead of a term. The two match up: at 3.5 % interest, 2 % initial repayment pays the loan off in about 29 years and 3 % in about 22 years. Enter that term here to see the same monthly payment.

No. Lenders in France, Spain and Italy usually require borrower insurance on top of the payment. Ask for it as a monthly amount and add it to the payment shown.