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Academy Mortgage returns to finish answering the top 10 questions new home buyers have about mortgages in its weekly Mortgage Minute series. This week, Gina Spearman discusses what is included in monthly mortgage payments.

Monthly mortgage payments will include principle, interest, taxes and insurance (PITI). The biggest part of the payment will come from principle and interest. Principle and interest is when you pay back the mortgage loan that was borrowed, as well as the interest accrued over the life of the loan. Additionally, your monthly mortgage payment will also include property taxes from your county or city. In case of any disasters such as a fire, tornado or theft, the monthly mortgage payment will also include homeowner’s insurance to protect you. Lastly, private mortgage insurance may also be included.

You do have the right to waive the escrow account, or taxes and insurance; however, a larger down payment may be required. This will allow you to pay the taxes and insurance annually instead of having them included in your monthly payment.