Established abbreviation for principal, interest, taxes, insurance. When financing the regular monthly payment usually include PITI.

Charges on a mortgage loan that must be prepaid at closing by purchaser.

1. Per diem interest is interest from date of closing to end of month
2. Homeowner's insurance must be prepaid for a minimum of 14 months (escrowed)
3. Property taxes prepayment varies from 2 months to 12 months, depending on when taxes are due (escrowed)

Prepayment compensation. Most loans in the U.S. do not have a prepayment penalty which means that the borrower can pay off his loan at any time without any penalty interest.

The total amount of money borrowed.

The action of taking the loan thru the loan process with the lender.

The borrower makes an unconditional promise in writing to pay back the funds borrowed to the lending bank.