This rate is used in the calculation of adjustable rate mortgages. In an adjustable rate mortgage, the margin is the number of percentage points added to the specified index rate in order to determine the interest rate. You should look closely at your loan agreement for details of the margin rate. PITI PITI is an acronym for Principal, Interest, Taxes and Insurance. The total of these expenses on a monthly basis are known as the monthly housing expense and are included in the mortgage payment in many loans.
Points Points are interest payments made at the origination of a loan.
One point is equal to one percent of the mortgage principal. The amount borrowed, or the amount still owing on a loan. Under the law, the terms of the mortgage, including the annual percentage rate of interest, must be clearly disclosed. Understanding basic terminology about your home mortgage can increase your confidence as you approach your next move. Equal Housing Opportunity.