Also found in: Acronyms, Wikipedia.


Stands for principal, interest, taxes, and insurance, the four main parts of monthly mortgage obligations.

Principal, Interest, Taxes, and Insurance

The components of a real estate owner's mortgage payment. When considering whether to loan money for a mortgage, a bank often considers what the PITI will be as a percentage of the potential borrower's gross monthly income. Generally speaking, mortgage banks prefer PITI to be 28% or less of the borrower's income.


PITI is an acronym for principal, interest, taxes, and insurance -- the four elements of a monthly mortgage payment.

Principal is the loan amount. Interest is the rate at which the finance charge you pay for borrowing is calculated. Taxes are the real estate taxes for which you are responsible, and insurance is the homeowners insurance that your lender requires you to have.

If your lender also requires private mortgage insurance (PMI), this amount may be included in the monthly payment or paid separately. Lenders use PITI to calculate your monthly mortgage obligation and how much you can afford to borrow. Most lenders prefer that you spend no more than 28% of your gross monthly income on PITI.


A mortgage loan term for principal,interest,taxes,and insurance.


Principal, interest, taxes, and insurance.

These are the components of the monthly housing expense. See Qualification/Meeting Income Requirements/Expense Ratios.

References in periodicals archive ?
PITI is calculated to the penny, yet the cost of utilities is never considered in the mortgage process, even though utility costs typically exceed three of those four painstakingly derived costs.
We also applaud the efforts of PNB and UPP partners Lorraine Harriton and Randa Masri, whose leadership was instrumental in the creation of PITI.
One recent investment, which will benefit PITI and merits special acknowledgment, is the Middle East Venture Capital Fund (MEVCF).
Modeled on Cisco's successful business partnerships in Palestine, PITI seeks to strengthen the Palestinian private sector by encouraging broader economic growth, development, and job creation for Palestinians.
Median Median Home Household PITI Qualifying Income Area Price Income Payment Income Gap Q1 2005 California $488,600 $53,540 $2,850 $113,920 ($60,380) California - Condos $388,290 $53,540 $2,260 $90,530 ($36,990) Central Valley $316,100 $41,040 $1,840 $73,700 ($32,660) San Francisco Bay Area $689,240 $67,770 $4,020 $160,700 ($92,930) Southern California $477,660 $52,050 $2,780 $111,370 ($59,320)
Homebuyer Income Gap Index(TM) Median Median Home Household PITI Qualifying Income Price Income Payment Income Gap Q4 2004 California $470,920 $53,240 $2,730 $109,320 ($56,070) California - Condos $380,560 $53,240 $2,210 $88,340 ($35,100) Central Valley $299,670 $40,840 $1,740 $69,560 ($28,730) San Francisco Bay Area $656,690 $67,750 $3,810 $152,440 ($84,690) Southern California $460,210 $51,780 $2,670 $106,830 ($55,050)
Earlier this week, ICOA announced similar distribution agreements with PITI for Hawaii, Guam, Tonga, Samoa, Fiji, Okinawa and Saipan.
Pitis and Vlosky (2000a, 2000b) surveyed 104 US primary wood products exporters in 1999 to examine their use of Internet technologies in business activities.
Pitis and Vlosky (2000b) were early to notice this trend, but firm statistical evidence was unavailable at the time.