Question 1

What does PITI stand for?

Accepted Answer

PITI stands for Principal, Interest, Taxes, and Insurance — the four components of a full monthly mortgage payment. Lenders use your total PITI payment to determine affordability.

Question 2

When do I have to pay PMI?

Accepted Answer

Private Mortgage Insurance (PMI) is required when your down payment is less than 20% of the home price. PMI typically costs 0.5-1% of the loan amount annually and is automatically removed once you reach 20% equity.

Question 3

How are property taxes included in my mortgage payment?

Accepted Answer

Most lenders require an escrow account where you pay 1/12 of your annual property taxes each month alongside your mortgage payment. The lender then pays the tax bill on your behalf.

Question 4

What affects my total monthly payment the most?

Accepted Answer

The interest rate has the biggest impact on your monthly payment. A 1% rate increase on a $400,000 loan adds roughly $250/month. Home price, down payment, and loan term also significantly affect payments.

Monthly Payment Calculator

PITI Explained

Monthly Payment Calculator

Related Calculators

PITI Explained