What is a mortgage?
A mortgage is a loan obtained to purchase any real estate. The "mortgage" is a lien (a legal claim) on the home or property that secures the promise that you pay the debt. Mortgages have two features in common: principal and interest.

What is included in your monthly mortgage payment?
The monthly mortgage payment pays off principal and interest of the mortgage. Some lenders will also include local real estate taxes, homeowner's insurance, and mortgage insurance in your mortgage payment.

What are factors that affect my mortgage payments?
The amount of the down payment, the size of the mortgage loan, the interest rate, the length of the repayment term and payment schedule will all affect the size of your mortgage payment.