PITI

Principle, interests, taxes and insurance (PITI) are the four components of a monthly mortgage payment.

The four components of a monthly mortgage payment.

-- Principal refers to the part of the monthly payment that reduces the remaining balance of the mortgage.
-- Interest is the fee charged for borrowing money.
-- Taxes and insurance refer to the amounts that are paid into an escrow account each month for property taxes and hazard insurance

 

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