You have an idea in mind of how much you are willing to put into a home, you have a good idea of the payment you can afford, and you are ready to talk to a lender. Before you go for your initial loan application meeting, there is one big thing you should know about home mortgage payments: only the cost of the loan payment may not be the only portion of your monthly payment.

Borrowing money for a home does usually mean the lender will have other things that have to be covered by your monthly payment beyond just what you are paying from month to month on your home. Here's a look at some of those additional costs that may be a part of your monthly mortgage payment. 

Homeowner's Insurance

A lot of mortgage lenders will include homeowner's insurance as part of your monthly payment. This is beneficial to you because homeowner's insurance payments can sometimes be charged in quarterly or bi-annual payments. If you have homeowner's insurance through your lender, you will pay a small portion of your payment every month toward insurance costs so you don't have to come up with so much at once. For the lender, including homeowner's insurance ensures that you maintain the proper coverage for the property. 

Property Taxes

Property taxes just come along with owning real estate property, and they are usually charged by the local government once a year, which can be a substantial payment that you have to come up with all at once. By including property tax payments in with your mortgage loan, a little of your payment every month goes to those taxes, so you and your lender can be sure it is always covered. 

Home Escrow Savings Contributions

A little less common, home escrow contributions act as a savings account that you have just in case something goes wrong with the property and you have to pay for repairs. Some lenders do require that you make small contributions along with your monthly payment to build up this account. In most cases, if you do not use the money within a certain time frame, it is released back to you along with interest. So you can think of this extra money as going toward a savings account of sorts that you can eventually get back if it is never used. With the money in the escrow account, you can rest assured that you have a small cushion of financing available when your home needs something. 

To learn more about mortgages, contact a broker who can help you with home loan rates in your area.