What is P.I.T.I.? That’s a term that is used when getting a mortgage through an institutional lender. It stands for Principal, Interest, Taxes, and Insurance, and relates to what your monthly mortgage payment will include, which will be a portion of the principal, the interest, a portion of the taxes, and a portion of the insurance. How they calculate that is, of course, amortized which means they spread out your payments over a certain period of years in order to come up with that dollar amount. They divide the amount of your insurance by 12 and come up with a monthly amount, and do the same thing with your taxes to come up with your monthly payments in order to come up to your total monthly payments which will include PITI – which is Principal, Interest, Taxes, and Insurance.
If you have any questions about your mortgage, give me a call at (727) 847-2288.