PITI stands for principal, interest, taxes and insurance, the four components of a typical monthly housing payment when taxes and insurance are paid through an escrow account. Lenders use PITI, often plus HOA dues and mortgage insurance, when calculating debt-to-income ratios.
PITI is the number buyers should compare to their rent, not principal and interest alone. On listings in high-tax areas, the tax portion can change affordability significantly, so a calculator that shows full PITI avoids nasty surprises.
Example: a $2,481 principal and interest payment plus $390 property tax and $177 insurance gives a PITI of about $3,048, before HOA dues or mortgage insurance.
Strictly no, but lenders add HOA dues to the housing payment when calculating ratios. Some people write PITIA to include association dues.
Because taxes and insurance are part of the cost of owning the home, and they're often collected monthly into escrow along with the loan payment.
Calculators with built-in definitions, free on the Agent plan.