PITI (Principal, Interest, Taxes, Insurance)
mortgageAlso known as: PITI, principal interest taxes insurance
Updated · Written and reviewed by Konstantin Iakovlev
Detailed explanation
For a $400,000 mortgage at 7% over 30 years: P+I = $2,661/month; Property tax (varies, ~$300-$700/month); Homeowners insurance (~$100-$350/month, higher in coastal/wildfire areas); Total PITI = $3,000-$3,700/month. Lenders typically require PITI ≤ 28% of gross monthly income (front-end DTI) and total debts ≤ 36% (back-end DTI) for conventional approval. Property tax + insurance are often "escrowed" — collected monthly with the mortgage payment, paid by the lender annually.
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