May 10, 2011

Michael Petruccelli asks; What is principal, interest, taxes, and insurance (PITI)

Michael Petruccelli says; The four components of a monthly mortgage payment on impounded loans. 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 mortgage