What is a mortgage payment?

A mortgage payment is the periodic payment made by a borrower to a lender to cover the cost of the loan. In the state of Virginia, a mortgage payment can be broken down into principal, interest, taxes, and insurance (PITI). The principal portion is the amount borrowed, and the interest is the fee the lender charges for borrowing the money. Taxes and insurance are calculated as a percentage of the value of the house and are used to protect the lender from loss in the event that the borrower defaults on the loan. Mortgage payments are generally paid on a monthly basis and may have additional fees such as closing costs and private mortgage insurance, depending on the loan type. The payment amounts can vary depending on the type of loan, the amount of the loan, the interest rate, and the term of the loan. A mortgage payment typically includes the principal, interest, taxes, and insurance portions, as well as additional fees.

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