A mortgage that consolidates insurance and tax payments into the principal and interest. This allows the property owner to write one check each month for all housing expenses. Most mortgages on residential properties are budget mortgages. See also: PITI.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
Typically a residential mortgage,one that requires monthly payments for real estate taxes and insurance in addition to principal and interest payments.
The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.