PITI
Principal, Interest, Taxes, and Insurance — the four components of the full monthly housing payment. Principal reduces your loan balance; interest is the lender’s cost; property taxes and homeowner’s insurance are collected monthly and held in escrow. Lenders use PITI (not just P&I) when calculating your front-end DTI ratio.
How does this affect your loan? Estimate self-employed qualifying income with the DTI calculator, or read the self-employed mortgage guide.
Related terms
- Appraisal — An independent assessment of a property’s market value performed by a licensed appraiser hired by the lender.…
- Escrow — An account managed by your loan servicer that collects a portion of your monthly payment to cover property tax…
- Title insurance — Insurance protecting the lender (and optionally the buyer) against claims against the property’s ownership his…
- Earnest money — A good-faith deposit made when your offer is accepted, demonstrating serious purchase intent. Typically 1–3% o…
- Closing disclosure (CD) — The final itemized disclosure of your loan terms, rate, monthly payment, and all closing costs. Federal law re…
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Educational definition only — not financial, legal, or tax advice. Programs and limits change; verify current terms with a licensed professional.