Mortgage Components (PITI)
| Component | Meaning |
|---|---|
| Principal | The actual amount borrowed to pay the seller |
| Interest | The cost paid to the lender for the loan |
| Taxes | Local government property taxes |
| Insurance | Protection for your home and lender's interest |
Calculate your total monthly home payment including taxes and insurance
Monthly Extra Costs
| Component | Meaning |
|---|---|
| Principal | The actual amount borrowed to pay the seller |
| Interest | The cost paid to the lender for the loan |
| Taxes | Local government property taxes |
| Insurance | Protection for your home and lender's interest |
A mortgage is a specific type of loan used to purchase real estate. The property itself serves as collateral. Most homeowners choose a **30-year fixed-rate mortgage**, but 15-year options are popular for those who want to pay less interest over time.
The monthly principal and interest are calculated using the standard amortization formula, then we add your monthly tax and insurance estimates to find your Total Monthly Payment.