What the calculation assumes
The rate and frequency you entered apply for the whole period shown. In real life, the rate changes at every renewal.
Three numbers to read together
Read the three numbers together: the payment, the total paid, and the interest. Stretching the amortization lowers the monthly payment, but you pay more interest overall.
What it does not tell you
This is not a quoted rate or an approval. Insurance, taxes, and property costs are not in it either.
A worked example
A $400,000 loan at 5% over 25 years gives a monthly payment of $2,326.42 and about $297,900 of interest over the full period. Stretched to 30 years, the payment drops to $2,134.76 ($192 less a month), but total interest rises to about $368,500, which is $70,600 more. A lower payment costs more overall.
Common questions
Why does my payment change when I change the frequency? Because the same debt is split into more or fewer payments. Accelerated payments (biweekly or weekly) add up to one extra monthly payment a year, which shortens the real amortization. Does this payment include taxes and insurance? No. It covers only loan principal and interest. Municipal and school taxes, home insurance, and condo fees, if any, come on top of the monthly housing cost.
With taxes and insurance
Send me the balance, rate, and amortization you entered: I’ll tell you what the payment becomes with taxes, insurance, and the rate a lender would offer you today.