Principal, Interest, Taxes, and Insurance (PITI)
The four components that make up a typical fully-escrowed monthly mortgage payment.
PITI is the standard way lenders summarize the total monthly cost of homeownership for underwriting and budgeting purposes. Principal and interest are the loan-payment portions; taxes and insurance are the escrowed portions that the lender pays on your behalf when due.
When mortgage insurance or HOA dues apply, lenders sometimes refer to PITIA, adding the A for association dues, or include MI as a separate line. The point is the same: capture every recurring housing cost that the underwriter measures against income.
A common rookie mistake is comparing the rate-and-payment quote a lender gives (often just P&I) against the all-in number on the Closing Disclosure (full PITI). Always compare apples to apples, especially when budgeting.
Related terms
Other terms you'll see alongside Principal, Interest, Taxes, and Insurance
The portion of your mortgage payment that goes toward reducing the loan balance, separate from interest.
The percentage of the loan balance the lender charges as the cost of borrowing, paid annually but accrued daily.
An annual tax levied by local governments on real estate, based on the property's assessed value.
Property insurance that covers losses to the dwelling, personal belongings, and liability, required by mortgage lenders.
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