Mortgage Payment Breakdown

– In today’s video,
we’re gonna be covering what is exactly in that mortgage payment that you’re gonna need to
make on a monthly basis when you purchase your new home. So let’s get started. (upbeat music) Welcome to the Tim Lamb Mortgage channel where everything is about you, the first time home buyer. If we’re meeting for the very first time, my name is Tim Lamb, and I’ve
been a mortgage professional for the last 18 years. And my passion is educating
first time home buyers so they are confident when they go buy their first place. Please consider subscribing
to the channel here because there’s great
education that you need to know to become a confident home buyer. So let’s dive into the
Question of the Day. So what is that number
one question that you have about buying your new place? Is it around down payments? Is it around when do I
make my mortgage payment? What is private mortgage insurance? Whatever that question
is, put it down below in the comments, and I will be happy to answer that question for you. All right, let’s break down the details of what is actually included in your monthly mortgage payment. All right, sometimes this is referred to as the P-I-T-I payment,
or the PITI payment. Some terminology and language
in the mortgage space. So essentially, what PI stands for is Principal and Interest. The T stands for property
Taxes, real estate taxes. The I is your homeowner’s Insurance, or insurance on the property. So Principal, Interest,
Taxes, and Insurance. And then, a fifth one is your
Private Mortgage Insurance. All right, so let’s dive into the details of each one of those. Principal, pretty simple. That is how much of your mortgage payment each month is gonna pay
down your loan balance. The I is for Interest. That is what interest
has accrued on your loan since your last mortgage payments. The T is for Taxes. So those are the real estate taxes that you need to pay on your property. The I is for homeowner’s Insurance. So you’ll need to work
with your insurance agent to get homeowner’s insurance coverage on your new place. And then, the last one, the P
for Private Mortgage Insurance is if you have less
than a 20% down payment, you may or may not need to pay that private mortgage insurance. So included in that
monthly mortgage payment is your principal, your interest, your real estate taxes,
your homeowner’s insurance, and possibly, that private
mortgage insurance. So if you have additional questions about what’s included in
your mortgage payment, put those questions down below, and I’ll be happy to answer ’em. Thank you so much for watching, and happy house hunting. (upbeat music)

Paul Whisler

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