For most homebuyers, the monthly mortgage payment included three separate parts: a payment on the principal of the loan (the amount borrowed); a payment on the interest; and a payment if applicable into a special account (called an escrow account) that we maintain to pay for things like hazard insurance and property taxes. These elements are referred to as PITI that is “Principal-Interest-Taxes-Insurance”.

Posted in: Terminology – The Language of Mortgage Lending