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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 ?
Despite the differences between Hui and Han and the diversity and mutability of Hui Islamic expression in China, many PITI leaders still construct their own Islamic tradition by linking it with Muslims in China, promoting the history of Cheng Ho, and building a Chinese-style mosque.
The PITI in particular has established a good relationship with both NU and Muhammadiyah in Surabaya.
As the mosque is situated in a majority non-Muslim neighbourhood, the PITI consulted local residents and gained their support for its construction.
Through various activities, the PITI is also strategic in promoting cultural diversity and religious inclusivity by combining Chinese, Islamic and local cultural elements.
PITI branches, from Sumatra to Sulawesi and from Java to Kalimantan, announced their intention to build Chinese-style mosques.
PITI South Sumatra initiated this mosque after the branch's leaders visited their counterparts in Surabaya and were inspired by the architectural design of the Cheng Hoo Mosque there.
As Chinese Muslims are dispersed across the archipelago, efforts by the PITI to replicate the Surabaya Cheng Hoo Mosque in Palembang and in other cities also reflect attempts to forge a "translocal" Chinese Muslim cultural identity in Indonesia.
Besides the PITI, individual Chinese Muslims have also engaged in the construction of Chinese Muslim translocal imaginations through building Chinese-style mosques.
Similarly, while the PITI is their major organization, Chinese Muslims are also active in other local religious organizations.
Similarly, during the 2009 riots in Xinjiang involving Han Chinese and Uighur Muslims, a Chinese Muslim in Indonesia who claimed to be a spokesperson of the PITI criticized China's brutality towards Uighurs and regretted the silence of Muslim nations on the discrimination against and persecution of that group.
For many Indonesians, both Chinese and Muslims, the PITI is synonymous with Chinese Muslims, and Chinese Muslims equal the PITI.
The PITI has organized a mass khitanan (circumcision) at the Cheng Hoo mosque for poor Muslims in Surabaya in cooperation with Al-Irsyad, a Muslim organization made up predominantly of people of Arab descent.