Whenever you discuss the loan installments, be certain that you’re crystal clear on what is incorporated in the amounts given to you. When your reoccurring loan payment happens to be mentioned as a set amount, find out if this represents principle and interest only. Loan installments usually incorporate principal or PITI, interest, taxes and insurance. These items tend to be divided up in the regular monthly bill but it’s important to understand the terms of the mortgage prior to making a commitment to anything. In addition, many non-conventional loans won’t incorporate insurance or taxes within the mortgage payment. Some luxury properties for sale go at auction so there will be no payments.