Mortgage payments are regular payments made by a borrower to a lender, typically a bank or financial institution, as part of a loan used to purchase a home. These payments usually consist of principal, which is the amount borrowed, and interest, which is the cost of borrowing that money. Additional costs may include property taxes and homeowners insurance, often included in monthly payments. The total amount of a mortgage payment can vary based on factors such as the loan amount, interest rate, and loan term. Borrowers can choose between fixed-rate mortgages, where the interest rate remains constant, and adjustable-rate mortgages, where the rate can change over time. Understanding these components helps homeowners manage their finances effectively.