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Glossary of Real Estate Terms

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Term Definition
PITI
Principle, interests, taxes and insurance (PITI) are the four components of a monthly mortgage payment. The four components of a monthly mortgage payment:
  • 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 hazard insurance.
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