Principal + Interest + Insurance + Property Taxes = Mortgage Payment

Monthly mortgage payments include:

Principal. The amount borrowed or remaining unpaid. The part of the monthly payment that reduces the remaining balance of a mortgage.

Interest. The fee charged for borrowing money.

Insurance. The monthly cost of your homeowner’s insurance.

Property Taxes. A tax based on the value of the house where the property is located and that funds things like schools, roads and other local services.