What does PITI mean in a mortgage?

PITI stands for Principal, Interest, Taxes, and Insurance — the four components of a full monthly mortgage payment. Lenders use PITI to calculate your debt-to-income ratio.

When is PMI required?

Private Mortgage Insurance is required when your down payment is less than 20% of the home's purchase price. PMI typically costs 0.5–1.5% of the loan amount annually and is removed once you reach 20% equity.

What is a good debt-to-income ratio for a mortgage?

Most lenders require a DTI of 43% or below. Conventional loans prefer DTI under 36%. FHA loans may allow up to 50% DTI in some cases.

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Purchase Price

Down Payment

Loan Term

Interest Rate

Property Tax Rate

Annual % of purchase price

Homeowner's Insurance

Annual amount

HOA Fees

Monthly amount

Principal & Interest$2,335/mo

Property Tax$450/mo

Homeowner's Insurance$150/mo

Total Monthly Payment

$2,935

Loan Amount$360,000

Total Interest Paid$480,583

Total Cost$1,146,583

Down Payment Scenarios

Down Payment	Amount	P&I	PMI	Total/mo
3.5% (FHA)	$15,750	$2,817	Yes	$3,597
10%	$45,000	$2,627	Yes	$3,396
20%	$90,000	$2,335	No	$2,935

Amortization Milestones

Year 5 — remaining balance$337,953

Year 10 — remaining balance$307,084

Year 15 — remaining balance$263,864

Payoff DateApril 2056

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