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Costs Needed to Close / Monthly P.I.T.I.


What costs do you need to budget for at closing?


Down Payment:
Sales price minus loan amount

Closing Costs:
All costs associated with obtaining a mortgage
Pre-paid Escrow:
Money needed to set up your tax & homeowners insurance escrow account

Homeowners Insurance:
One year policy
Pre-paid Interest:
Interest on your new loan from the day you close until the end of the current month

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What costs are included in your monthly payment?


Principal & Interest:
Repayment of your mortgage loan

Tax Escrow:
1/12 of your yearly tax bill

Homeowners Insurance Escrow:
1/12 of your yearly insurance bill

Mortgage Insurance:
Required if you put less than 20% down

Total Monthly Payment:
Sum of the numbers from above

*** P.I.T.I. (principal, interest, taxes, and insurance)

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Send e-mail to John Shea at: loan@mindspring.com
Last modified: February 01, 1997