When financing the purchase of your home, be sure to factor in the total PITI for your monthly costs.  The term PITI stands for the four components that make up the typical monthly payment:

• Principal – monthly portion that’s applied to the principal or balance owed.
• Interest – monthly portion applied to the interest on your mortgage.
• Taxes – property taxes assessed by your local taxing authority (typically the county)
• Insurance – includes homeowners insurance and private mortgage insurance (if applicable to your type of loan)

Sometimes online mortgage calculators may not include the taxes and insurance.  Keep this in mind as they can increase your monthly mortgage payment by several hundred dollars.  Your lender will also provide you with a good faith estimate that shows approximate closing costs and estimated monthly payment that should include everything.

Depending on your loan, you may be able to elect to pay taxes and insurance on an annual basis from your own account.  Most likely, these will be included with your monthly payment and paid by your lender through an escrow account though.