The monthly payment is composed of principal, interest, taxes, insurance, private mortgage insurance (or mortgage insurance premium for FHA) if any, and association dues, if any. The addition of all six elements is the total monthly payment. All houses have different taxes, insurance, and association dues. When you purchase real estate, you inherit the previous owner’s taxes until you get re-assessed next year. Mortgage companies qualify borrowers based on what the taxes are now instead of what they will be in the future.