Most loans have 4 parts:

• Principal: the repayment of the amount you actually borrowed;
• Interest: payment to the lender for the money you've borrowed;
• Homeowners insurance: a monthly amount to insure the property against loss from fire, smoke, theft, and other hazards required by most lenders;
• Property taxes: the annual city/county taxes assessed on your property, divided by the number of mortgage payments you make in a year.

Most loans are for 30 years, although 15 year loans are available, too. During the life of the loan, you'll pay far more in interest than you will in principal - sometimes two or three times more! Because of the way loans are structured, in the first years you'll be paying mostly interest in your monthly payments. In the final years, you'll be paying mostly principal.