What is a Mortgage Payment?
A mortgage payment is an amount of money paid on a weekly, bi-weekly, or monthly basis that helps to pay off amount owed on a mortgage. Most people who have home loans make once a month payments. Mortgage payments vary in size depending on the size of the loan, type of loan, and interest rate. Other things may influence size of payments. These payments may consist of three or four parts. A common acronym is used to describe these parts. This is PITI, which stands for principal,interest, taxes, and insurance. Principal is the percentage of the mortgage payment that helps to pay down the initial amount of borrowed money. Typically principal payments help build equity or ownership. Larger payments to the principal mean people have more ownership in their property earlier. Amount of money paid to the principal is influenced by type of mortgage. Lengthy mortgages like 40-year loans would mean principal payments are very small, and some home loans, like interest-only ones, might mean no mone
