When you’re buying a home in Salt Lake City, one of the most important things to understand is PITI. It stands for Principal, Interest, Taxes, and Insurance – the four parts that make up your monthly mortgage payment.
Principal: This is the amount you borrow for your home, which you pay down over time.
Interest: This is what you pay your lender for the loan, based on your rate and terms.
Taxes: Property taxes are collected in an escrow account to make sure they’re paid on time.
Insurance: Homeowners insurance protects your investment, and if you put down less than 20%, you might have PMI (Private Mortgage Insurance) as well.
Understanding PITI helps you budget better and avoid any surprises. If you’re ready to explore homeownership in Salt Lake City, The Stern Team is here to guide you through the entire process, making sure you’re prepared for every step!
