What Is PITI (Principal, Interest, Taxes and Insurance)?
PITI (Principal, Interest, Taxes and Insurance): The four parts of a typical monthly mortgage payment, the total lenders use to qualify you.
Also called: PITIA, mortgage payment
PITI stands for principal, interest, taxes and insurance, the parts of a full monthly mortgage payment.
- Principal pays down your loan balance.
- Interest is the cost of borrowing.
- Taxes are your property taxes, usually paid monthly into an escrow account.
- Insurance is homeowners insurance, and often mortgage insurance too.
When HOA dues are included, it's sometimes written PITIA ("A" for association dues).
Example
On a $350,000 loan at 6.75% for 30 years, principal and interest is about $2,270. Add $350 in taxes, $150 in insurance and $120 in PMI, and PITI is about $2,890.
Good to know
Principal and interest stay the same on a fixed-rate loan. Taxes and insurance can change every year, so your total payment can still go up. See escrow analysis.