PITI
Business & Finance abbreviation · Real Estate & Mortgage
| Stands for | Principal, interest, taxes and insurance |
|---|---|
| Categories | Business & Finance |
PITI stands for Principal, interest, taxes and insurance, a real estate & mortgage abbreviation.
Four components of a typical monthly mortgage payment: repayment of loan principal, interest, property taxes and homeowners insurance, the last two often collected into an escrow account. Lenders use PITI to calculate housing debt-to-income ratios.
Example: Our PITI comes to $2,840, of which $610 is taxes and insurance.
Usage notes
PITIA adds homeowners association dues, which lenders also count. Escrowed taxes and insurance change yearly, so a fixed-rate borrower's total payment can still rise after an escrow analysis. Mortgage insurance, if any, is usually added on top.
Related abbreviations
More real estate & mortgage abbreviations
- NMLS – Nationwide Multistate Licensing System
- NN – Double net lease
- NNN – Triple net lease
- NOD – Notice of default
- NOI – Net operating income
- P&I – Principal and interest
- PMI – Private mortgage insurance
- POA – Property owners association
- PSA – Purchase and sale agreement
- PSF – Per square foot
- PUD – Planned unit development
- QCD – Quitclaim deed