PITI

An acronym for the four primary components of a monthly mortgage payment principle, interest, taxes, and insurance (PITI).

Abbreviation for p rincipal, i nterest, t axes and i nsurance.

Principal, Interest, Taxes, and Insurancethe four elements of a monthly mortgage payment; payments of principal and interest go directly towards repaying the loan while the portion that covers taxes and insurance (homeowner's and mortgage, if applicable) goes into an escrow account to cover the fees when they are due.

Common acronym for principal, interest, taxes, and insurance—used when describing the monthly charges on a mortgage.

PITI is an acronym for principal, interest, taxes, and insurance - the four elements of a monthly mortgage payment.

Principal is the loan amount. Interest is the rate at which the finance charge you pay for borrowing is calculated. Taxes are the real estate taxes for which you are responsible, and insurance is the homeowner's insurance that your lender requires you to have.

If your lender also requires private mortgage insurance (PMI), this amount may be included in the monthly payment or paid separately. Lenders use PITI to calculate your monthly mortgage obligation and how much you can afford to borrow. Most lenders prefer that you spend no more than 28% of your gross monthly income on PITI.