piti

PITI is most widely used in financial contexts as an acronym for Principal, Interest, Taxes, and Insurance. It represents the four elements typically included in a standard monthly mortgage payment. In many cases, lenders place taxes and homeowners insurance into an escrow account, so the monthly PITI payment covers the principal and interest on the loan plus the estimated tax and insurance costs. When evaluating mortgage affordability, lenders compare PITI to gross monthly income or to a borrower’s debt-to-income ratio, to determine how large a loan a borrower can reasonably afford.

Piti may also function as a personal name or surname in some cultures, though it is not widely used as a common noun outside these contexts. The usage and spelling can vary by language and region.

Because PITI also appears as an acronym in other, unrelated domains or as a proper noun, its meaning is highly context-dependent. When encountering the term, it is best to determine its intended sense from the surrounding text or source.