Quick answer: The core loan payment that repays borrowed principal plus interest charged by the lender.
Definition
The core loan payment that repays borrowed principal plus interest charged by the lender.
Why it matters
Principal and Interest matters because buyers need to understand the full cash-flow impact of a mortgage before committing to a home.
Related formula
True monthly cost = loan payment + ownership costs + utilities + maintenance reserve
FAQ
What does Principal and Interest mean?
The core loan payment that repays borrowed principal plus interest charged by the lender.
Why does it matter for affordability?
Principal and Interest can change the true monthly cost or cash required to buy a home.
Where can I test it?
Use the TrueCost calculator to see how the term affects payment, DTI, or leftover cash.