Repayment of a mortgage loan requires that the borrower make a monthly payment back to the lender. That monthly payment includes both repayment of the loan principal, plus monthly interest on the outstanding balance. Loan payments are amortized so that your monthly payment stays the same throughout the repayment period, but more of each payment goes toward principal as the outstanding balance decreases. Mortgage payments can also include pre-payments of property taxes, homeowner's insurance, and HOA dues into an escrow account managed by your lender.