PITI
PITI stands for Principal, Interest, Taxes, and Insurance — the four components that make up your total monthly mortgage payment.
Principal reduces your loan balance. Interest is the cost of borrowing. Taxes and insurance are collected into escrow and paid by your servicer on your behalf. Together, these four items determine the full monthly obligation associated with your mortgage. See our guide to understanding your monthly mortgage payment.
When a lender quotes your "monthly payment," they should be referencing your full PITI — not just principal and interest. A payment that excludes taxes and insurance can be misleading and lead to budget surprises.
Why This Matters: Understanding your full PITI gives you an accurate picture of what homeownership actually costs each month. Always ask for the complete number when evaluating affordability.
Want to see your full monthly payment for a specific home price? Use our mortgage payment calculator to see your full monthly payment with taxes, insurance, and mortgage insurance included.
Common question
What does PITI include?
Principal, Interest, Taxes, and Insurance. Together they make up your total monthly mortgage payment. Taxes and insurance are usually collected in escrow.
Why is PITI important?
Lenders use PITI to calculate your debt-to-income ratio and affordability. Knowing your full PITI helps you budget accurately — not just principal and interest.
Related Topics
Related Mortgage Terms
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