Taxes and Insurance

A commonly used termThe time period by the end of which a debt must be fully repaid. Also refers to the maturity period in real estateThe physical parcel of land and all improvements permanently attached. An identified parcel or tract is PITIWhen buying a home, this acronym refers to principal, interest, taxes and insurance, the fixed costs. This abbreviation stands for principalThis term is used to mean the employer of an agent; or the amount of money borrowed, or the amount of, interestThis is the amount that is imposed when payment is remitted after the due date., taxes and insuranceSee "property insurance;" "private mortgage insurance;" "insured mortgage;" "title insurance.". The taxEnforced charge exacted of persons, corporations and organizations by the government to be used to support and insurance components of a mortgageIncludes all forms of debt for which real property, that is, land and/or buildings, is given as security. paymentPeriodic (usually monthly) installments paid to a lender to be applied toward repaying your loan. Payments are generally held by the lenderThe entity that provides loan funds to the borrower. Depending on the type of loan, the lender may be in an escrow accountThis is an account where a portion of a borrower's mortgage payment is set aside to pay for real estate. The lender pays any property taxThe amount which the state and/or locality assesses as a tax on a piece of property. and homeowner's insuranceHomeowners insurance (also called "hazard insurance") should be equal to at least the replacement cost bills as they are due, ensuring they are paidThis is the amount of tax posted as paid for the year in question, either in installment payments or on time. A homeHOME: Provides funds to local governments and states for new construction, rehabilitation, acquisition buyerA market participant who takes a long futures position or buys an option. An option buyer is also called's monthly mortgage payment generally covers expensesThings that you are required to spend money on, such as food, clothing, housing, or other things that you have to have. through the escrowThe holding of money or documents by a neutral third party prior to closing. It can also be an account account. If you don't have your homeowner's insurance and propertyThe rights or interests a person has in the thing he owns; not, in the technical sense, the thing itself. taxes paid out of a lender escrow account, your localAn individual with exchange trading privileges who trades for his own account, traditionally on an exchange government and your property insuranceInsurance providing financial protection against the loss of, or damage to, real and personal property company will send payment notices directly to you. It is your responsibility to make sure you pay these bills on time. If you're planning to purchase a condominiumOwnership is mandated by statue and requires publication of a declaration creating the condominium (sometimes or cooperativeResidents purchase stock in a cooperative corporation that owns a structure; each stockholder is then, talk to your lender about how they view condo and co-op fees. Most likely, they are considered housing costs and not a part of PITI. However, this can vary from lender to lender.

Taxes and Insurance

Funds collected as part of the borrowerPerson responsible for repaying a loan who has signed and agreed to the terms in the promissory note.'s monthly paymentPeriodic (usually monthly) installments paid to a lender to be applied toward repaying your loan. Payments and held in escrowThe holding of money or documents by a neutral third party prior to closing. It can also be an account for the payment of the borrower's state and localAn individual with exchange trading privileges who trades for his own account, traditionally on an exchange propertyThe rights or interests a person has in the thing he owns; not, in the technical sense, the thing itself. taxes and insuranceSee "property insurance;" "private mortgage insurance;" "insured mortgage;" "title insurance." premiumsPeriodic payment to keep an insurance policy in force..