Principal: Repayment on the amount borrowed
Interest: Payment to the lender for the amount borrowed
Taxes & Insurance: Annual Tax and Hazard Insurance Premiums are collected into and Impound escrow account held by the lender to pay these annual liabilities on the subject property. These premuims are collected monthly.
(This feature is optional for those borrowing 80% or less, in which case the borrower will be required to pay the County Tax Assessor and Hazard Insurance agent directly the full premium once a year.)
Mortgage Insurance: Private mortgage insurance (PMI) is insurance written by a private company that protects the lender from losses in the event the borrower defaults on the mortgage. Borrowers are required to pay the premium for private mortgage insurance. Private mortgage insurance limits a lender's exposure to financial loss resulting from loan default. If you make a down payment of less than 20%, even if you have a good credit profile, lenders generally require mortgage insurance.