Definition
This represents your entire monthly housing payment combined—principal, interest, taxes, insurance, and sometimes PMI. It's the standard way lenders calculate whether you qualify.
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PITI is standard debt-to-income calculation. Principal reduces loan balance. Interest is mortgage cost. Taxes are property taxes escrowed. Insurance includes homeowners and PMI if required. Lenders calculate PITI for qualification. Debt-to-income uses PITI. 28-30% of gross income is typical maximum. PITI increases with property taxes/insurance. Refinancing can reduce PITI. Budgeting uses PITI. Complete housing cost metric.
Pro Tip
Budget for full PITI payment. Maintenance and utilities are additional costs.
Example
PITI of $2,500 represented principal, interest, taxes, and insurance combined.