Q: What does my mortgage payment include? A: For most homeowners, the monthly mortgage payments include three separate parts: Principal: Repayment on the amount borrowed   Interest: Payment to the lender for the amount borrowed   Taxes & Insurance: Monthly payments are normally made into a special escrow account for items like hazard insurance and property taxes. This feature is sometimes optional, in which case the fees will be paid by you directly to the County Tax Assessor and property insurance company.