The monthly mortgage payment mainly pays off principal and interest. But most lenders also include local real estate taxes, homeowner's insurance, and mortgage insurance (if applicable).

The amount of the down payment, the size of the mortgage loan, the interest rate, the repayment term and payment schedule will all affect the size of your mortgage payment.

The interest rate is a major factor in your monthly payment. A lower interest rate allows you to borrow more money than a high rate with the same monthly payment. Interest rates can fluctuate as you shop for a loan, so ask lenders if they offer a rate "lock-in" which guarantees a specific interest rate for a certain period of time. Remember that a lender must disclose the Annual Percentage Rate (APR) of a loan to you, and express it in terms of a yearly interest rate. It is higher than the interest rate because it also includes the cost of points, mortgage and other fees included in the loan.

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