Regular payments given to a lender to repay a mortgage

You usually pay off a mortgage in monthly or biweekly installments. If you have an escrow or impound account, your installment can be broken down into four parts, often referred to as PITI: loan principal, loan interest, property taxes and hazard insurance. So, every month, lenders collect one-twelfth of your annual property taxes and hazard insurance to place into the account. So, when these bills become due, the lender can readily pay them off.

See: Amortization