Mortgage Glossary›PITI
Market & Rates

PITI

The total monthly mortgage payment: Principal, Interest, Taxes, and Insurance — the full cost a lender uses to calculate your ability to repay.

Full Definition

PITI is the acronym for the four components of a full mortgage payment: Principal (the loan paydown), Interest (the cost of borrowing), Taxes (property taxes, collected monthly and held in escrow), and Insurance (homeowners insurance and, if required, mortgage insurance — PMI or MIP). Lenders use PITI to calculate your front-end DTI ratio (PITI ÷ gross monthly income). For budgeting purposes, PITI is the true monthly cost of homeownership — though buyers should also budget for maintenance, utilities, and HOA dues. On an escrow account, the lender collects 1/12 of the annual property tax and insurance bills each month and pays those bills when due.

Related Terms

Market & Rates
Principal
The original loan amount borrowed — or the remaining balance still owed on the l…
Loan Process
Escrow
A neutral third-party account that holds funds during a transaction — and also r…
Qualifying
Debt-to-Income Ratio (DTI)
The percentage of your gross monthly income that goes toward debt payments — a k…

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