5% and a term of thirty years. You're not really 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 little portion of the overall amount you owe, just a small 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 modifications, but the parts of your mortgage payment that approaches your principal and interest charges alters the longer you have the mortgage. Interest payments are front-loaded early on and are slowly decreased till principal payments start to exceed them.