Loan basics
Principal & interest (P&I)
Also known as: P&I, principal and interest
The core mortgage payment that goes toward interest and reducing the loan balance.
Principal and interest (P&I) is the portion of your monthly mortgage payment that pays interest to the lender and reduces principal. It usually does not include property taxes, homeowners insurance, HOA dues, or PMI-those are often listed separately or collected in escrow.
See also
Definitions are for general education. Loan products, insurance, and taxes vary by lender, location, and your situation. FinanceFlow calculators produce estimates only and are not a lender quote or professional advice.