What is covered in a monthly mortgage payment?

Depending on the loan type this may vary.  Below is a breakdown of the four most common traditional loans we see.  

Conventional loans require PMI (private mortgage insurance) for any loan in which you don't put 20% down.  So, if you have less than 20% down your mortgage payment will consist of your Principal and Interest (P&I), your taxes and insurance (this is your escrow account which is also required with less than 20% down) and PMI.  

FHA loans require MIP (mortgage insurance premium) for any loan regardless of the amount of money you put down.  All FHA loans will consist of your Principal and Interest (P&I), your taxes and insurance (this is your escrow account which is required) and MIP.  Note: although the MIP declines each year for most borrowers this insurance will be for the life of the loan or as long as you have the FHA loan.   

VA loans do NOT require mortgage insurance. All VA loans will consist of your Principal and Interest (P&I), and your taxes and insurance (this is your escrow account which the VA doesn't require but most lenders will). 

USDA/Rural Development loans require an annual guarantee fee for any loan regardless of the amount of money you put down.  1/12 of this fee is paid with each of your monthly payments and at the end of the year it's paid in a lump sum.  All USDA loans will consist of your Principal and Interest (P&I), your taxes and insurance (this is your escrow account which is required) and the annual guarantee fee (1/12).  NOTE: Although the annual fee declines each year for most borrowers this insurance will be for the life of the loan or as long as you have the USDA loan.