Sometimes pronounced “pity” this acronym describes the four parts of a basic monthly mortgage payment:
- P – Principal – The price you paid for your home divided by how many months your payment is stretched out
- I – Interest – The interest rate you pay each month for the loan on the principal.
- T – Taxes – The annual property taxes, minus any allowable deductions, divided by 12 months. (Learn more about Florida’s property tax exemptions as a way to lower your monthly mortgage payment)
- I – Insurance – The annual insurance premium, divided by 12 months
Contributing Blogger – Barb Wolter