Each mortgage payment includes 5 items. It’s very called “PITI + PMI”. “P” indicates payment that reduces the primary loan balance (This goes towards your equity ). “I” represents Interest that you just pay into the lender for lending the money invest in the new home. “T” stands for Taxes to the county. “I” Stands for your Home owners Insurance. Finally, “PMI” is an acronym for Private Mortgage Insurance.
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