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.