1. Principal - This is the actual amount you will need to finance.  Most lending institutions will place a limit of 80% of the property's appraised value as the maximum amount you can borrow.  However, you can always find a source that will charge a higher interest rate or up front fee (points) for allowing you to finance a higher percentage of the property's value.

2. Interest - This is the percentage the financing institution will charge you for loaning you the money.  Mortgage rates vary not only from day to day, but also from lending institution to lending institution.  Be sure to shop around for the best possible interest rate you can find.

3. Years - Most homebuyers will finance their purchase by obtaining a mortgage that will require payments to be made over 30 years.  However, in some cases you can obtain a mortgage for other lengths of time.

4. Annual Taxes - Most locales require your mortgage holder to remit the annual property taxes on your behalf.  In this way both the municipality and the lending institution can maintain a level of certainty that the taxes will be paid.  These taxes are usually added to your monthly mortgage payment.

5. Annual Insurance - Most lending institutions will require you to maintain certain levels of property insurance to protect their investment.  To be certain these insurance premiums are paid, they are added to your monthly mortgage payment.