The HOME Team | St Petersburg Tampa Bay residential real estate

What Is PITI?

January 16, 2015
What Is PITI?

What is PITI?16328299-be-sure-to-pay-the-home-mortgage-on-time

Sometimes pronounced “pity” this acronym describes the four parts of a basic monthly mortgage payment:

  1. P – Principal – The price you paid for your home divided by how many months your payment is stretched out
  2. I – Interest – The interest rate you pay each month for the loan on the principal.
  3. T – Taxes – The annual property taxes, minus any allowable deductions, divided by 12 months. (Learn more about Florida’s property tax exemptions as a way to lower your monthly mortgage payment)
  4. I – Insurance – The annual insurance premium, divided by 12 months

Learn more about PITI.

 

Contributing Blogger –  Barb Wolter