5% and a term of 30 years. You're not actually paying simply 4. 5% of $200,000 as interest; you're paying interest on what remains of the balance after each payment every month. Due to the fact that your monthly payment is only a small fraction of the total quantity you owe, just a tiny part of the loan balance makes money off, and interest gets charged once again on that balance the next month.Your home mortgage payment is the very same each month unless your rates of interest changes, but the parts of your home loan payment that approaches your principal and interest charges alters the longer you have the home loan. Interest payments are front-loaded early on and are gradually minimized up until primary payments start to surpass them.