Principal and Interest

Definition

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

Synonyms
principal and interest

Acronyms
P&I, PI

Related Terms and Acronyms

• 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.
• 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.
• 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.
• 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.
• Interest (IN, int) — Acronym & Abbreviation,
  • Money paid for the use of borrowed funds, usually expressed as an annual percentage.
  ➥ Bank account transaction code.
• Interest Only Payments — Definition,
  • A payment plan where only the interest is paid off.
• Loan — Definition,
  • Letting another party use something of value temporarily.
• 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.
• Original Principal Balance — Definition,
  • The amount borrowed.
• 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 and Taxes (PIT) — Acronym, Important,
  • Principal, interest and taxes. The components of a monthly mortgage payment.
• 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,
• Principal, Interest, Taxes, Heat (PITH) — Acronym,
• Remaining Balance — Definition,
  • Unpaid principal on a loan.
• 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.