The full explanation
You repay it in monthly payments that cover the principal (the money borrowed) and the interest, and often the property taxes and insurance as well. In Spanish, "hipoteca" and "préstamo hipotecario" mean the same thing.
An example
Rosa and Luis buy a home with a thirty-year mortgage: the bank lends them most of the price and they pay one installment every month. If they stopped paying, the bank could take the house.
With real numbers
Computed with official data for the whole U.S. In your county the numbers may differ.
- Example loan
- $266,160
- Principal and interest per month
- $1,803
- Interest over 30 years
- $382,942
If you buy a $332,700 home, the typical U.S. value, with 20% down, your loan would be $266,160. Over 30 years at the average fixed rate of November 5, 2026 (7.18%), you would pay $1,803 a month in principal and interest, and $382,942 in interest in total.
Computed with: American Community Survey (ACS) 5-year estimates (2020–2024) · Freddie Mac Primary Mortgage Market Survey (PMMS) (November 5, 2026) · Fannie Mae Selling Guide B7-1-01 — Provision of Mortgage Insurance (October 17, 2026)
You will see it in…
- The Loan Estimate and the Closing Disclosure
- The document you sign at closing (the mortgage or deed of trust)
- Your loan servicer's monthly statements
