The real estate and mortgage industry have their own language. I guess that is true of most industries. Sometimes we do a bad job of making sure others understand what the heck we are talking about.
PITI is one you should know if you have a mortgage, are thinking about getting a mortgage, or if you are really into learning acronyms. Just kidding about that last one 😉
PITI is your whole mortgage payment (if you have escrowed the TI=Taxes and Insurance which many loans require you to do anyway).
Often when you use a mortgage calculator online it is on the PI (not the pie you eat, the PI= Principle and Interest)
So, what does those words even mean?
Principle= the amount you borrowed
ex: you bought a house for $200,000 and put down 5%, so you borrowed $190,000 (your principle)
Interest=the amount in a percentage which you are paying on that principle
Taxes= Property tax, which is kept in an escrow account for you and then the bank pays the tax bill on your behalf…with your money.
Insurance= Home Owners Insurance, again kept in an escrow account for you and then the bank pays the bill…with your money.
Did that answer all your questions? It can get complicated with all the jargon!