What are the components of a mortgage payment?

Submitted by Monica McNabb on Thu, 2010-07-22 17:12

A monthly mortgage payment consists of four (4) parts combined as PITI. P is Principle, the amount of money you are borrowing for your purchase; I is Interest, the amount charged from the Lender for loaning you the money; T is Taxes, the annualized real estate taxes pro-rated for one (1) month; I is for Insurance, the annualized home owner's insurance policy pro-rated for one (1) month.

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