What is PITI?
PITI is an acronym for “Principal, Interest, Tax and Insurance”. Your PITI is your total monthly payment including the loan payment, property taxes and homeowners’ insurance, mortgage insurance (if applicable) and homeowners’ association dues (if applicable). Lenders use your PITI to calculate your debt-to-income ratio (DTI)—a big part of underwriting your loan.
Paying taxes and/or insurance in with or separately from the loan doesn’t change your PITI. The costs are what they are, regardless of when and how you pay them.
Oh and, not sure why, but we say “pee-eye-tee-eye”, not “pity”
In addition to our glossary, we have a library of downloadable PDFs that cover calculating a payment, property taxes, and other mortgage fundamentals.
Subscribe to our YouTube channel!
We have a growing YouTube library of videos covering every part of the mortgage process. Head over and explore, and don’t forget to subscribe (and turn on notifications so you don’t miss new videos!)
