Independent mortgage education — no lender bias

US Mortgages Explained in Plain English

Whether you're buying your first home, refinancing, or just trying to understand what your lender is actually offering — this is where the jargon stops.

30yr Most common loan term
4 Loan types covered
13 In-depth guides

Current 30-year fixed rate averages are published weekly by Freddie Mac. Check the latest figure at the Freddie Mac Primary Mortgage Market Survey →

No lender relationships
Every rate claim sourced
Written by Mike Lucas
Independently published
Free tool

Mortgage Payment Calculator

Estimate your monthly payment, total interest, and how your loan breaks down over time — in under a minute.

Home price $400,000
Down payment $80,000 (20%)
Interest rate 6.81%
Loan term
Your estimated payment
Monthly mortgage payment
$2,096
Principal & interest only
Loan amount $320,000
Total interest paid $434,673
Total cost of loan $754,673
PMI required? No (20% down)

Estimate only. Does not include property taxes, homeowners insurance, or HOA fees. Rates from Freddie Mac PMMS.

Learn the basics

Start with the right guide

Every guide on this site is written for homeowners — not mortgage brokers. No jargon, no sales pitch.

The fundamentals

How a mortgage actually works

Most homeowners make their biggest financial decision without understanding the mechanics. Here's the short version.

1

You borrow the purchase price (minus your down payment)

The lender pays the seller. You now owe the lender that amount — plus interest — repaid over the loan term, typically 15 or 30 years.

2

Each monthly payment covers interest first, then principal

In the early years, most of your payment goes to interest. Over time, more goes to reducing the balance. This is called amortisation.

3

Your home is the collateral

If you stop paying, the lender can foreclose and sell the property to recover what they're owed. This is why lenders care so much about your ability to repay.

4

After 30 years of payments — you own it outright

The final payment clears the balance. No more mortgage. The equity you've built belongs to you.

Full explanation
$320,000 loan · 30yr · 6.81% — where your payments go
YearInterestPrincipalBalance
Year 1$21,641$3,514$316,486
Year 5$21,050$4,105$297,821
Year 10$19,898$5,257$271,241
Year 15$18,259$6,896$236,988
Year 20$15,876$9,279$191,684
Year 25$12,336$12,819$130,769
Year 30$1,248$24,108$0

Notice how interest dominates early years, then flips. This is amortisation.

From the blog

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"I'm a UK researcher who discovered that millions of American homeowners make the biggest financial decision of their lives without fully understanding it. That's why I built this site."

Mike Lucas — Founder, MyHomeRates.com  ·  Read the full story

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Editorial disclaimer: MyHomeRates.com is an independent educational publisher. We have no lender relationships and receive no commission from any financial product. Mortgage rates referenced are national averages sourced from the Freddie Mac Primary Mortgage Market Survey. They are not quotes and will vary based on your credit profile, location, and lender. Content on this site is researched and edited by Mike Lucas, with the assistance of AI writing tools. Nothing on this site constitutes financial advice. Always consult a licensed mortgage professional before making borrowing decisions.