Mortgage repayment refers to the process of paying back a loan taken out to purchase a home. This loan, known as a mortgage, is typically paid back in monthly installments over a set period, often 15 to 30 years. Each payment usually includes both principal and interest, with the principal being the original loan amount and interest being the cost of borrowing. During the repayment period, homeowners may also pay property taxes and homeowners insurance, which can be included in the monthly payment. As payments are made, the homeowner builds equity in the property, which is the difference between the home's value and the remaining mortgage balance.