PITI
The four parts of a typical mortgage payment: Principal, Interest, Taxes and Insurance. Lenders qualify you on the full PITI figure.
What does PITI mean?
PITI is the true monthly cost of owning, not just the loan payment: Principal and Interest repay the mortgage, while Taxes and Insurance are collected into escrow and paid on your behalf. Lenders qualify you on the full PITI figure — and add HOA dues where they apply — so a payment quote that shows only principal and interest understates what you will actually owe each month.
Frequently asked
What does PITI stand for?
Principal, Interest, Taxes and Insurance — the four parts of a typical monthly mortgage payment. Principal and interest repay the loan; taxes and insurance are collected into escrow and paid on your behalf.
Why do lenders qualify you on PITI?
Because it reflects the real monthly cost of owning, not just the loan. Qualifying on principal and interest alone would understate what you owe, so lenders add taxes, insurance and any HOA dues so your debt-to-income ratio matches reality.
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Related terms
All glossary terms