Mortgage

PITI (Principal, Interest, Taxes, Insurance) The four parts of your monthly mortgage payment that lenders use to judge what you can afford

Priya Shah By Priya Shah, Senior Mortgage Editor · Updated 2026-06-09
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PITI stands for Principal, Interest, Taxes, and Insurance — the four components that make up a typical monthly mortgage payment. The principal pays down your loan balance, the interest is the cost of borrowing, the property taxes are collected by your lender and held in escrow, and the homeowners insurance protects the home. When applicable, your payment may also include mortgage insurance and HOA dues. Lenders rely on your full PITI figure — not just principal and interest — to measure affordability and calculate your debt-to-income ratio. That means a low advertised rate doesn't tell the whole story; your real monthly obligation depends on local tax rates and insurance costs, which vary by state and property. Knowing your complete PITI helps you budget accurately before you commit to a loan.
Also Known As
Principal, Interest, Taxes, Insurance Total monthly mortgage payment PITIA (with association dues) Full housing payment
Used in Context
  1. Your loan officer ran your PITI and found that property taxes and insurance pushed your monthly payment higher than the principal-and-interest quote suggested.
  2. A homebuyer comparing offers through Dreamy Leads asked each lender for the full PITI so the numbers were apples-to-apples.
  3. Because her HOA dues counted toward affordability, the underwriter included them in her PITIA when checking her debt-to-income ratio.
Related Terms
Mortgage Amortization The schedule that shows how each loan payment splits between principal and interest over time Mortgage Escrow Account A lender-held account that pays your property taxes and homeowners insurance from your mortgage payment Mortgage DTI (Debt-to-Income) The percentage of your gross income consumed by monthly debt payments — a key loan qualifier Mortgage Annual Percentage Rate (APR) The yearly cost of your mortgage including fees, not just the interest rate Mortgage Mortgage Forbearance A temporary agreement to pause or reduce your mortgage payments during hardship Mortgage Mortgage Servicer The company that collects your mortgage payments and manages your escrow account
Frequently Asked Questions

What does PITI include?

PITI includes four parts: principal, interest, property taxes, and homeowners insurance. When they apply, mortgage insurance and HOA dues are also added in. Together these make up your typical monthly mortgage payment, which is the figure lenders use to measure whether you can afford the loan.

Why do lenders use PITI instead of just principal and interest?

Lenders use full PITI because it reflects your real monthly housing cost, not just the loan portion. Taxes and insurance can add meaningfully to your payment, so including them gives a more accurate picture of affordability and your debt-to-income ratio before approving the loan.

Are taxes and insurance always part of my monthly payment?

Often, yes. Many lenders collect property taxes and homeowners insurance in an escrow account and bundle them into your monthly payment. Whether escrow is required varies by loan type and lender, so ask whether yours will be included or paid separately.

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