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Additional Details
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Additional Details
I need to add to this ... |
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hanaa | Most mortgages are repaid in equal monthly payments. What two amounts are included in each payment? |
Most mortgages are repaid in equal monthly payments. What two amounts are included in each payment? |
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mkulda
|
While the simple answer is Principal (P) and Interest (I), it isn't that simple.
Many mortgagors also place property taxes and homeowner's insurance into escrow, which is a third payment.
And, there may be other insurance coverages (like credit life) or PMI....which is mortgage insurance.
So the simple mortgage payment can contain many more than just two simple amounts.
Try to explain that in your homework. |
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Mr 51
 |
Principal and interest. You can also have your taxes and insurance included in your monthly payment, often it is an election you make with your mortgage company. |
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his temptress
 |
Principle (the amount you originally borrowed) and interest.
You may also have an escrow account which accumulates to cover your taxes and insurances. |
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Codi
|
It will actually depend on your set up. Some include prinicple, interest, but some also include an escrow for your taxes, homw owners insurance and even mortgage insurance. You will need to talk to your financial institution to see what they are putting your payments toward. |
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twnstar2
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Principal and interest referred to as P & I payments. Now stop cheating on your finance classes and read the text book. |
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Dave
 |
Principal and interest. But, most lenders require you to pay into escrow to cover property taxes, as well, and some do the same with homeowners' insurance (PITI). |
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mbrcatz
|
prinicpal and interest. |
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