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Definitions of PITI

This is an abbreviation that stands for Principal, Interest, Taxes, and Insurance. These four items are combined and known typically as the monthly mortgage payment. The "PI" is your actual monthly loan payment, and the annual property taxes and insurance are divided by 12 and known as the monthly "TI". Some borrowers pay Taxes and Insurance separately from the mortgage payment, and others pay the 1/12 to their lender which holds the funds in escrow to pay the property tax and insurance bills once a year. This definition of PITI contributed by jimolenbush.