Also written as:
PITI
Principal, Interest, Taxes, and Insurance — the four components of a full monthly mortgage payment.
PITI stands for Principal, Interest, Taxes, and Insurance — the four components of a complete monthly mortgage payment. Principal reduces your loan balance, interest pays the lender, and property taxes and homeowners insurance are typically collected monthly into an escrow account. Lenders qualify borrowers on the full PITI payment (plus mortgage insurance and HOA dues where applicable), not just principal and interest.
Example
A $2,300 monthly payment might break down as $1,700 principal and interest, $400 property tax, and $200 insurance.
Formula
PITI = Principal + Interest + Property Taxes + Insurance
Also known as
full mortgage payment, housing payment