Mortgage conversations include words like principal, interest, and term. Principal is the amount borrowed; interest is the cost of borrowing; term is how long you’ll pay back the loan. Different terms (15 vs 30 years) change monthly payments and total interest paid. For planning, it’s helpful to isolate each term so you can see how a shorter term usually raises monthly payments but reduces total interest. This question tests recognition of these core mortgage building blocks — the basic vocabulary every homeowner-in-training should know before comparing loan offers or running affordability calculations. Knowing these terms helps you ask better questions of lenders and avoid misunderstandings.