Each mortgage payment includes 5 items. In order to called “PITI + PMI”. “P” indicates payment that reduces the principal loan balance (This goes towards your equity ). “I” is known as Interest you simply pay towards lender for lending you the money obtain the company. “T” stands for Taxes on the county. “I” Stands for your Home owners Insurance. Finally, “PMI” is known as Private Mortgage Insurance.
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