Common AcronymsHomebuying Glossary

PITI

Also known as Principal, Interest, Taxes, and Insurance

The four components typically bundled into a single monthly mortgage payment.

In plain English

PITI stands for Principal, Interest, Taxes, and Insurance — the four pieces most lenders combine into one monthly housing payment, often collected through an escrow account.

Why it matters

When comparing homes, always think in terms of PITI rather than just principal and interest — it's the number that reflects your true monthly cost.

Where you'll run into it

Guides and tools on TheBuyingPath that cover piti in context.

Related terms

Not sure where this fits in your process?

Answer a few questions and get a personalized homebuying roadmap — where you are now, what comes next, and which terms like this one matter at each step.

Start your roadmap