Most loans have 4 parts:
- Principal – the repayment of the amount you actually borrowed
- Interest – payment to the lender for the money you’ve borrowed
- Homeowners insurance – a monthly amount to insure the property against loss from fire, smoke, theft, and other hazards required by most lenders
- Property taxes – the annual city/county taxes assessed on your property, divided by the number of mortgage payments you make in a year.