What Is PITI?

PITI is the sum of the four components of a typical monthly mortgage payment: Principal, Interest, property Taxes, and homeowners Insurance.

Principal and interest

Principal and interest are determined by your loan amount, rate, and term. Taxes and insurance are usually collected monthly into an escrow account and paid on your behalf.

PMI

If your down payment is under 20%, lenders typically add PMI (private mortgage insurance) until you reach 20% equity.

This guide is educational and does not constitute financial advice.