5% and a term of 30 years. You're not in fact paying just 4. 5% of $200,000 as interest; you're paying interest on what remains of the balance after each payment every month. Because your regular monthly payment is just a small portion 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 every month unless your rates of interest modifications, but the parts of your home mortgage payment that goes towards your principal and interest charges alters the longer you have the home mortgage. Interest payments are front-loaded early on and are gradually reduced till primary payments begin to exceed them.