PITI
Principal + Interest + Taxes + Insurance — your true monthly housing cost.
Lenders quote 'mortgage payment' as P&I but the full housing cost includes property tax (T) and home insurance (I), often paid through escrow with each monthly payment. PITI is what comes out of your bank account — and what to budget against.
Related
- Escrow — Money held by the lender to pay your taxes and insurance.
- Amortization — Paying down a loan with equal periodic payments split between principal and interest.