What's Included in a Monthly Mortgage Payment? (PITI Explained)
By Colson · Reviewed by Abodemic Editorial Standards · Updated June 1, 2026
A monthly mortgage payment has four parts, abbreviated PITI: Principal, Interest, Taxes, and Insurance — plus PMI if you put down less than 20%, and HOA dues if applicable. Understanding each piece explains why your payment is higher than a simple loan calculator suggests.
What is included in a monthly mortgage payment?
Your payment is commonly called PITI: Principal, Interest, Taxes, and Insurance. If you put down less than 20% you also pay PMI, and if your home is in an association you pay HOA dues. Add them up and you get the all-in number the mortgage calculator shows.
Principal and interest
Principal pays down what you borrowed; interest is the cost of borrowing. Early on, most of your payment is interest; over time the balance shifts toward principal — that's amortization.
Taxes and insurance (escrow)
Property taxes and homeowners insurance are usually collected monthly into an escrow account and paid for you when due. They can be a big share of the payment — in high-tax states, hundreds of dollars a month — which is why a "loan-only" estimate understates your real cost.
PMI and HOA
PMI applies on conventional loans under 20% down and cancels at 78% LTV. HOA dues apply to condos and planned communities and aren't part of the loan but are part of your monthly housing cost. Both are included in Abodemic's full payment estimate.