Question Details

Bill Troton, Home Buyer in Silver Spring, MD

What is P&I financing?

Asked by Bill Troton, Silver Spring, MD Thu Jul 16, 2009

Can someone give me strong definition of what P&I financing is because it is increasing my monthly payments by over $100 dollars and I dont even what it is.

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Answers

3
principle and interest, but you're maybe talking about an arm loan, aren't you?

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Good Luck.
0 votes Thank Flag Link Mon Jul 20, 2009
Bill,

P&I generally refers to Principle and Interest, it differs from PITI which refers to Principle, Interest, Taxes and Insurance. I would need more context to know for sure how P&I is increasing your mortgage payment. Your principle payment should remain static unless you have a subprime loan, the interest payment could be changing because you have an ARM, all of this is just a stab in the dark. Post back with more info and we can all try to help from there.

Where did you see "P&I"? Try to give us some context as well.

Cameron Piper
Web Reference: http://www.campiper.com
0 votes Thank Flag Link Thu Jul 16, 2009
I think you are talking about PMI Mortgage Insurance. Did you borrow more then 80% of the homes appraised value? If you did you must pay MI on the amount above 80%. It is in insurance in case you default. If you default, banks can recoup part of the loan amount from the insurer. P&I could also mean Principle and Interest. PITI is Principle, Interest, Taxes, and Insurance. Don't know if I helped you.
0 votes Thank Flag Link Thu Jul 16, 2009
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