PITI is the handy acronym for your monthly mortgage payment. It’s pronounced like the word “pity” and the letters stand for the four parts of that monthly payment:
P stands for Principal That’s the part of the monthly payment used to pay down the balance of the loan. Your monthly principal payments, plus your down payment, add up to the equity you have in your home.
I stands for Interest This is what you pay the lender for borrowing the money.
T stands for Taxes These are the property taxes you pay on the value of the land and building.
I stands for Insurance This refers to both homeowner’s insurance and mortgage insurance, which is generally required when your down payment is less than 20%.
The monthly PITI payment is compared to your monthly gross income as part of the process of approving your mortgage loan.
We want to put together a solution for your situation. Please contact us today if you have questions about any part of the home buying or refinancing experience…and best wishes in this and all your endeavors!