What items make up my total mortgage payment?

Mortgage payments are made up of 4 basic components - Principal, Interest, Taxes, and Insurance - commonly referred to as PITI. The P&I portion of your payment is based on your loan amount, interest rate, and loan term. Taxes are based on 1/12th of the annual property taxes (calculated at fully assessed value for new properties.) Insurance is based on 1/12th of the annual premium for your homeowners insurance.