What you pay your lender each month — usually principal, interest, property taxes, and homeowners insurance combined. Sometimes called PITI.
Your mortgage payment isn't just principal and interest. For most homeowners, it includes four pieces called PITI:
P — Principal: the part that pays down the loan balance
I — Interest: what the lender charges on the remaining balance
T — Taxes: 1/12 of your annual property tax bill, collected by the lender into escrow
I — Insurance: 1/12 of your annual homeowners insurance, also escrowed
If you have less than 20% down, you'll also pay mortgage insurance (PMI on conventional, MIP on FHA), which adds to the monthly. HOA dues (if applicable) are usually paid separately, not through the lender.
Example
On a $320,000 mortgage at 6.5%: $2,022 P&I + $400 taxes + $150 insurance + $245 PMI (if under 20% down) = $2,817/month.
Also known as
PITI, monthly mortgage payment, house payment