PITI
PITI stands for the four parts of a typical mortgage payment: Principal, Interest, Taxes, and Insurance. It's the true monthly cost of owning — not just principal and interest — and it's the figure lenders use in debt-to-income calculations to decide how much home you can afford.
The proportions surprise buyers who shopped on the loan payment alone. On a $350,000 home with 20% down, a $280,000 loan at 6.5% costs $1,770 a month in principal and interest — but add property tax at 1.1% and insurance and the real payment is about $2,241, so P&I is only 79% of it. The extra $471 a month is $5,650 a year that never appeared in the mortgage quote. Some lenders extend the acronym to PITIA, adding HOA dues, and lenders count HOA fees in your ratios even though they do not count utilities. When comparing owning against renting, PITI plus maintenance is the honest number.
Put it to work
Mortgage Calculator
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Home Affordability Calculator
How much house can you afford? Get a realistic max price from your income, debts, and down payment using the 28/36 rules lenders actually apply.
Debt-to-Income Ratio Calculator
Calculate the debt-to-income (DTI) ratio mortgage lenders use to size your approval — front-end and back-end — and see how much room you have before 36%.