# What’s Included in a Monthly Mortgage Payment? Canonical URL: https://valor.mortgage/answers/what-is-included-in-a-mortgage-payment/ Page title: What's Included in a Mortgage Payment? | Valor Mortgage By [Christopher Armantrout](https://valor.mortgage/about-us/), Licensed Mortgage Loan Originator · NMLS [#1210804](https://www.nmlsconsumeraccess.org/EntityDetails.aspx/INDIVIDUAL/1210804) Last updated November 5, 2026 Rules accurate as of November 2026 Quick answer Your mortgage payment is mainly four things: principal, interest, property taxes and homeowners insurance, often called PITI. Some loans add mortgage insurance, and some neighborhoods add homeowners association dues. Many lenders collect taxes and insurance through an escrow account. That means the home’s price doesn’t tell you the payment, and part of your payment can change even on a fixed-rate loan. Rules on this page were checked on November 5, 2026 against CFPB guidance. Program terms are subject to agency and lender guidelines and may change, and individual lenders can set stricter rules. ## What goes into a mortgage payment April 24, 2026 · 26 seconds · [Watch on YouTube](https://www.youtube.com/shorts/IZk72TO24xw) **Transcript:** What goes into a monthly mortgage payment is primarily four things. Your total principal, your interest, your taxes, and your insurance. Sometimes you may have extra things such as your mortgage insurance and your homeowners association. Those items sandwich in and create your PITI or your total monthly mortgage payment. If you're interested in knowing more, give us a call to buy with confidence and buy with Valor. ## What does each piece do? | Piece | What it pays for | Can it change? | |---|---|---| | **Principal** | Paying down what you owe | The share grows over time on a typical loan | | **Interest** | The cost of borrowing | Fixed-rate loans stay set; adjustable-rate loans can change | | **Taxes** | City and county property taxes | Yes, when rates or your assessment change | | **Insurance** | Your [homeowners insurance](https://valor.mortgage/the-difference-between-mortgage-and-home-insurance/) | Yes, at renewal or if you switch | | **Mortgage insurance**, if required | Protects the lender, not you. See [what PMI is](https://valor.mortgage/answers/what-is-pmi/) | Depends on your loan; PMI can end | | **HOA dues**, if any | Your homeowners association | Yes, when the association changes them | General information. Your Loan Estimate shows the projected payment for your actual loan. ## What is escrow? An escrow account is a way to pay taxes and insurance through your mortgage servicer. Part of your payment goes in, and the servicer pays those bills for you, so you avoid a big bill once or twice a year. If those costs rise, your escrow payment can rise even though your rate didn’t change. That’s a common reason a fixed-rate mortgage payment goes up. ## Do HOA dues affect what you can borrow? Yes. As Christopher says in the second video, HOA dues can reduce how much you get qualified for, even if you pay them separately. A lender counts them with your housing cost when working out your [debt-to-income ratio](https://valor.mortgage/how-much-home-can-you-buy/). Before you offer on a home in an HOA neighborhood, ask what the dues are and whether any increases are planned. ## How do Tennessee taxes fit in? Property taxes vary by county and city, so the same price can mean a different payment across a county line. Our [Tennessee mortgage calculator](https://valor.mortgage/mortgage-calculator/) estimates them by address or ZIP code. Treat it as a guide, and check the home’s actual tax bill before you make an offer. It can’t know your actual rate or insurance premium, which is [why online estimates can miss](https://valor.mortgage/answers/why-is-my-payment-different-from-zillow/). ## More from Christopher on this ### The home's price doesn't tell you what you'll actually pay each month June 26, 2026 · 47 seconds · [Watch on YouTube](https://www.youtube.com/shorts/rjDOWd4WWh4) So price isn't exactly your payment. If you're wanting to be able to establish what your monthly payment is, then you're going to need to be able to see the bigger picture. Because broken down within your total payment is going to be your principal, how much you actually owe and actually paying that month, the interest that has accrued since the last payment, your taxes, how much the city and the county are potentially charging you monthly for your taxes that you'll pay annually, your homeowners insurance, and finally, one that most people may not even consider is your homeowners association. If you're buying a house within a homeowners association neighborhood, that actually gets included as well. It actually can reduce how much you get qualified for. So your total payment isn't necessarily the price. Your total payment is those items smashed together that you pay monthly. If you want to buy with confidence, buy with Valor. ## Mortgage payment FAQ ### What does PITI stand for? Principal, interest, taxes and insurance. If you also have HOA dues, you may see it written as PITIA, and lenders include these costs when they review your housing payment. ### Why did my mortgage payment go up? On a fixed-rate loan, the usual reason is escrow, meaning higher property taxes or insurance. Your servicer’s escrow statement should explain the change. ### Do I have to have an escrow account? Many lenders require one, depending on the loan. Ask your loan officer whether yours does, and what your options are. ## Where these rules come from | Rule or figure | Source | As of | |---|---|---| | Escrow accounts | [CFPB, escrow accounts](https://www.consumerfinance.gov/ask-cfpb/what-is-an-escrow-or-impound-account-en-140/) | Nov 5, 2026 | | Loan Estimate | [CFPB, Loan Estimate](https://www.consumerfinance.gov/ask-cfpb/what-is-a-loan-estimate-en-1995/) | Nov 5, 2026 | | Monthly housing expense (PITIA) | [Fannie Mae Selling Guide B3-6-05](https://selling-guide.fanniemae.com/sel/b3-6-05/monthly-debt-obligations) | Nov 5, 2026 | ## Related answers and guides - [Why is your real payment different from Zillow?](https://valor.mortgage/answers/why-is-my-payment-different-from-zillow/) - [What is PMI, and when does it go away?](https://valor.mortgage/answers/what-is-pmi/) - [What does loan-to-value mean?](https://valor.mortgage/answers/what-is-loan-to-value/) - [More answers on your payment and rate](https://valor.mortgage/answers/#payment). - [About Christopher Armantrout](https://valor.mortgage/about-us/). [Call me at (615) 671-9178](tel:+16156719178). That’s the fastest way to get a straight answer on what you’d qualify for and what your full payment could include. If it’s after hours, [grab a time on my calendar](https://valor.mortgage/book-your-appointment/). Pick a slot that works and I’ll call you then. If your life is too chaotic for a phone call right now — I understand — [start an application](https://valor.mortgage/purchase/) and I’ll review it and reach out with a plan. About the author [Christopher Armantrout](https://valor.mortgage/about-us/) Owner & Senior Loan Officer, Valor Mortgage NMLS #1210804 Christopher is a licensed Mortgage Loan Originator in the State of Tennessee and has been originating home loans since 2015. He founded Valor Mortgage in Springfield in 2019 and works with veterans, first-time buyers, self-employed borrowers, and families across Robertson County and Middle Tennessee. [More about Christopher](https://valor.mortgage/about-us/) [Verify this license on NMLS](https://www.nmlsconsumeraccess.org/EntityDetails.aspx/INDIVIDUAL/1210804) **Valor Mortgage, LLC** · Christopher Armantrout, Mortgage Loan Originator, NMLS #1210804 · Valor Mortgage, LLC is powered by Encore Lending Group, LLC, NMLS #1249911 · Licensed in Tennessee · Equal Housing Opportunity 724 S Main St, Springfield, TN 37172 · (615) 671-9178 · christopher@valor.mortgage · [NMLS Consumer Access](https://www.nmlsconsumeraccess.org/EntityDetails.aspx/INDIVIDUAL/1210804) The dollar figures on this page are illustrative examples for general information only and are not an offer, a rate quote, or a commitment to lend. Actual interest rates and APRs vary based on loan program, borrower qualifications, property, market conditions and other factors. Program fees, limits and terms are set by the agencies named above and change without notice; all loans are subject to credit approval, income verification and property appraisal. Not all applicants will qualify. --- ## Contact Valor Mortgage - Christopher Armantrout, Senior Loan Officer, NMLS #1210804 - Phone: [(615) 671-9178](tel:+16156719178) - Email: [christopher@valor.mortgage](mailto:christopher@valor.mortgage) - Office: 724 S Main St, Springfield, TN 37172 - [Book an appointment](https://valor.mortgage/book-your-appointment/) · [Apply online](https://valor.mortgage/purchase/) · [Contact page](https://valor.mortgage/contact-us/) Valor Mortgage, LLC is powered by Encore Lending Group, LLC, NMLS #1249911 ([NMLS Consumer Access](https://www.nmlsconsumeraccess.org/EntityDetails.aspx/COMPANY/1249911)). Christopher Armantrout, Loan Officer, NMLS #1210804. Licensed in Tennessee. Equal Housing Opportunity. All loan programs, rates, terms, and conditions are subject to change without notice. Loan approval is based on borrower qualification, credit review, income verification, and property eligibility. Not all applicants will qualify. Not a commitment to lend.