PITI - Principal, Interest, Taxes and Insurance

The definition of mortgage term: Principal, Interest, Taxes and Insurance

The components of the total monthly housing expense. Principle is the amount of the loan that is yet to be paid. Interest is the cost of financing a loan, often expressed as an annual percentage. Taxes are 1/12 of your yearly tax payment each month that is put into an escrow account to be paid by the lender when due. Insurance is the your MIP or PMI that is also put into an escrow account to be paid at a later time.

 

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