Repayment of a mortgage loan requires the borrower to make a monthly payment to the lender. The monthly payment includes repayment of the loan principal and interest on the outstanding balance. Loan payments are amortized, meaning your monthly payment remains the same during the repayment period, but the percentage of the amount that goes toward principal will increase as the outstanding mortgage balance decreases. Mortgage payments can include escrows, which are pre-payments of property taxes, homeowners insurance, and monthly homeowners association dues into an escrow account, managed by your lender. When those items are due, your lender pays the tax authority, insurance company or homeowners association, as applicable.