What does an interest rate mean on your mortgage payment?

I have a conventional loan of 218,400 at 6.375. My monthly payment is 1904.99. On my last statement, $ 239.66 went to principal, while the rest to interest. We are at year 4 of our mortgage. I get the whole pay more interest at the beginning and at the end you pay more to principal. My main quesiton is what does that 6.375 mean? How does that affect my payment. For instance, on a credit card the lower the interest rate, the lower you give to the company. But right now about 12-15 percent is going towards principals. Thanks!

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