As you pay down the principal, you pay less interest each month because your loan balance decreases. As a result, a larger portion of your monthly payment goes toward principal reduction. Near the end of the loan, you owe much less interest, and the majority of your payments go toward paying off the remaining principal.

Your taxes will almost certainly be included in your monthly mortgage payments. While this will increase your payments, it will allow you to avoid paying a thousand dollars (or more) all at once. And, with the assistance of your lender, you can ensure that your property tax payments are made in full and on time.