How the payment is calculated
The loan amount is the home price minus your down payment. The monthly payment then comes from the standard fixed-rate amortization formula, M = P × r(1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan amount, r is the annual rate divided by 12, and n is the number of monthly payments. At a 0% rate the formula does not apply, so the loan amount is simply divided by the number of payments.
Worked example
A home price of 300,000 with 60,000 down leaves a loan of 240,000.00. At 6.5% over 30 years that is 360 payments of 1,516.96, with 306,108.97 paid in interest over the life of the loan.
Rounding
Each payment is rounded to the cent, every row of the schedule is built from those rounded amounts, and the final payment absorbs any leftover cents so the loan is paid off exactly. The totals shown are added up from the same rows, so the figures on the page always agree with each other.
What is not included
The payment shown covers principal and interest only. Property tax, homeowner's insurance, private mortgage insurance and association fees vary by location and lender and are not included; they can add substantially to a real monthly housing cost. This is an estimate, not a loan offer.