What is PITI?
PITI stands for the four parts of a typical monthly mortgage payment: Principal, Interest, Taxes, and Insurance. Principal and interest repay the loan, while taxes and insurance are often collected through an escrow/impound account. Lenders look at total PITI when deciding how much a buyer can afford.
Example: A buyer’s $3,200 payment breaks down into $2,300 principal and interest, $700 property taxes, and $200 homeowners insurance — together, the PITI.