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The monthly payment is calculated using the standard amortization formula: M = P[r(1+r)^n]/[(1+r)^n-1], where P is the loan principal, r is the monthly interest rate, and n is the total number of payments.

A 20% down payment is traditionally recommended as it avoids private mortgage insurance (PMI). However, many loans allow as little as 3-5% down. A larger down payment means lower monthly payments and less interest paid overall.

Even a small change in interest rate can significantly impact your total cost. For example, on a $300,000 loan, the difference between 6% and 7% is about $200/month and over $70,000 in total interest over 30 years.