Amortization refers to the process of reducing debt through periodic payments or the systematic write-off of intangible asset costs over a set period.
The Mortgage Constant is the percentage ratio between the annual debt service and the loan principal.
PITI is an acronym representing the four primary components that make up a borrower's monthly mortgage payments: Principal, Interest, Taxes, and Insurance. Understanding PITI is crucial for both lenders and borrowers to ensure accurate financial planning and loan repayment.
