PITI


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PITI

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.

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.

PITI

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

PITI

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 ?
Whether you are a first-time buyer learning mortgage jargon or a longtime homeowner, you need to understand the details of your PITI payment.
She shared the same sentiments with Mr Piti that, parents should also play a role in ensuring government funds are put to good use.
Piti, a young employee on Alvarez's and Eichner's coffee farm in the Dominican Republic, becomes friends with the couple, who learn that he has a girlfriend back in Haiti and that they will soon have a daughter.
The monthly magazine of the East Java PITI, Komunitas (Community), creatively displayed images of both the Niu Jie Mosque in Beijing and the Cheng Hoo Mosque in Surabaya on its cover during Idul Fitri 2008.
Piti said: "With our play and the desire that we have, we will try to get the three points.
This is made most clear when he insists on visiting Port-au-Prince after the earthquake so that Piti can see it because it is part of his country, but also that he and his wife be there to support him when he does.
With a rent roll of $1,600 and a PITI of only 800 Lee was able to see the benefits and the “power” of rental or passive income.
Julia Alvarez: Well, the beginning of the book I tell the story of how we met and how Piti came to work at Alta Gracia.
Other in the income statement is 2 Mortgage payments PITI (Assumable!)
Natural Resources Defense Council launched China's first Pollution Information Transparency Index (PITI), filing information requests with 113 cities in September 2008.
In my long trekking experience I am yet to see more blue river waters than the Piti river.
The tumble in global crude prices from records above $140 a barrel in July to around $60 has prompted IRPC to cut its run rate by 10,000 bpd to about 160,000-170,000, chief executive Piti Yimprasert told Reuters in an interview.