Four factors make up your mortgage payment (aka PITI):
Principal: The amount you borrowed from the lender to cover the cost of your house. Interest: The amount the lender charges for the money you borrowed. It’s calculated as a percentage. You prepay interest on your mortgage at closing.  Property Taxes: These taxes are typically set by your municipal government and may change over the course of your mortgage. Insurance: Your closing costs might include a year of homeowners insurance premiums that you pay upfront. After the first year, a monthly premium is typically tacked onto your mortgage payment. Depending on your loan type (conventional or government-backed) and the size of your down payment, you may be required to pay for mortgage insurance.