Principal and Interest

Importance: 0.57

Is a company: no

Is a proper noun: no

Synonyms

  • principal and interest

Acronyms

  • PI
  • P&I

Definition of Principal and Interest

  1. An acronym for principal and interest which are components of a monthly mortgage payment.

Related Terms and Acronyms

  • Balloon Mortgage Definition,
    • A loan that has regular monthly payments which amortize over a stated term but call for a final lump sum (balloon payment) at the end of a specified term, or maturity date, such as 10 years.
  • Annual Percentage Yield (APY) Acronym,
    • The percentage, required by Truth in Savings regulations, to be disclosed on interest-bearing deposit accounts that reflects the total interest to be earned based on an institution's compounding method, assuming funds remain in the account for a 365-day year.
  • Remaining Balance Definition,
    • Unpaid principal on a loan.
  • Interest Only Payments Definition,
    • A payment plan where only the interest is paid off.
  • Original Principal Balance Definition,
    • The amount borrowed.
  • Interest (IN, int) Acronym & Abbreviation,
    • Money paid for the use of borrowed funds, usually expressed as an annual percentage.
    Bank account transaction code.
  • Additional Principal Payment Definition,
    • Extra money included with a loan payment to pay off the amount owed faster. Over time, this practice reduces the amount of interest paid.
  • Annual Percentage Rate (APR) Acronym, Very Important,
    • A yearly rate of interest that includes fees and costs paid to acquire the loan. Lenders are required by law to disclose the APR. The rate is calculated in a standard way, taking the average compound interest rate over the term of the loan, so borrowers can compare loans. In mortgages, it is the interest rate of a mortgage when taking into account the interest, mortgage insurance, and certain closing costs including points paid at closing. There is no APR in an automobile lease; instead, the cost of money is expressed as the money factor.
    A number used to compare costs associated with mortgage loans and other forms of financing.
  • Loan Definition,
    • Letting another party use something of value temporarily.
  • Step-rate Mortgage Definition, Important,
    • A fixed-rate home loan on which payments are lower at the beginning, typically for two years, and which then rise.
  • Principal Definition,
    • The original balance of money lent on an outstanding loan and fees, excluding interest. Also the remaining balance of a loan, excluding interest.
  • Principal, Interest, Taxes, Heat (PITH)Acronym,
    • Gross Debt Service (GDS) Acronym, Very Important,
      • The total monthly mortgage (or rent) payments, property taxes, utilities and maintenance fees as a percentage of gross monthly income.
      Used by mortgage lender underwriters to determine one's ability to qualify for a mortgage loan.
    • Principal, Interest and Taxes (PIT) Acronym, Important,
      • Principal, interest and taxes. The components of a monthly mortgage payment.
    • Mortgage (mtg) Abbreviation, Important,
      • A mortgage is a contract stipulating a specific real property, typically a residence or building, as collateral for a loan. The mortgage incurs a rate of interest that varies according to term and other features.
    • Principal, Interest, Taxes, and Insurance (PITI) Acronym,
      • Acronym for the elements of a mortgage payment: principal, interest, taxes and insurance.
    • Principal, Interest, Taxes, Condo fees, Heat (PITCH)Acronym,
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