Your monthly mortgage payment includes a few different costs. Here’s how they break down.


Today we’re going to talk to you about what exactly is included in your monthly mortgage payment.

When you pay rent, you’re essentially paying all interest every single month because you don’t own the property. When you do own a property, your monthly mortgage payment can be thought of in four categories that make up an acronym: PITI.

The “P” stands for principal. It’s like an investment made to yourself every month. The first “I” stands for interest, because the bank has to make something on the money they loaned to you. The “T” and the last “I” stand for taxes and insurance, which cover the home in case of disaster. All of this is lumped into one monthly payment.

“If you put less than 20% down, you’ll also have to pay mortgage insurance.”

In addition to PITI, you’ll also have MI, or mortgage insurance. If you put less than 20% down on your home, you have to pay this because you’re at a higher risk of going to default, unless you have a VA loan.

If you have any questions about PITI, buying a home, or anything else, don’t hesitate to reach out and give us a call or send us an email today. We’d love to hear from you.