PITI (PITI)
Direct definition
Principal, Interest, Taxes, and Insurance — the four components of a typical monthly housing payment.
Written by the Vabasso Mortgage Editorial Team · Reviewed against agency and federal sources · Read our editorial policy for how we research and review mortgage content
Plain-English explanation
PITI is the base housing payment lenders use to calculate affordability. HOA and mortgage insurance are added when applicable.
Why it matters
Comparing homes on PITI (not just P&I) reveals the true monthly cost.
Where you may see it
- Loan Estimate
- Mortgage statement
- Pre-approval letter
- Escrow analysis
A real-world example
A $2,000 P&I plus $500 taxes and $150 insurance produces a $2,650 PITI (or $2,800 with HOA).
Educational and illustrative only
A common misunderstanding
PITI isn't the total cost of homeownership — it excludes HOA dues, maintenance, and utilities.
Ask Vabasso AI
This glossary provides general educational information. Mortgage terminology, qualification methods, forms, timelines, fees, program rules, and legal meanings may vary by lender, investor, loan program, property, occupancy, state, and transaction. Definitions do not represent loan approval, legal advice, tax advice, or a commitment to lend.
- Author
- Vabasso Mortgage Editorial Team
- Reviewed by
- Vabasso Mortgage Licensed Advisory Team
- Last reviewed
- July 30, 2026