Each loan payment includes 5 items. Will be called “PITI + PMI”. “P” indicates payment that reduces the key loan balance (This goes towards your equity ). “I” refers to Interest that you simply pay towards lender for lending the money pay for the house. “T” stands for Taxes towards the county. “I” Stands for the Home owners Insurance. Finally, “PMI” is an acronym for Private Mortgage Insurance.
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