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A typical mortgage payment includes principal (the loan amount), interest, property taxes, homeowner's insurance, and possibly mortgage insurance and HOA fees. This is often referred to as PITI (Principal, Interest, Taxes, and Insurance).

Amortization is the process of paying off a loan over time through regular payments. Each payment covers both interest charges and principal repayment. In the early stages of a loan, a larger portion of each payment goes toward interest. As the loan balance decreases, more of each payment goes toward paying down the principal.

Your auto loan interest rate is determined by several factors including your credit score, loan term, vehicle age, and the lender's policies. Generally, borrowers with higher credit scores qualify for lower interest rates, and shorter loan terms often have lower rates than longer terms.

Compound interest is interest calculated on the initial principal and also on the accumulated interest from previous periods. This means you earn interest on your interest, causing your money to grow at an accelerating rate over time. The more frequently interest is compounded, the faster your balance grows.

Your marginal tax rate is the rate at which your last dollar of income is taxed. Your effective tax rate is the average rate you pay on all your taxable income. The effective rate is typically lower than the marginal rate because of the progressive nature of the tax system.