# PITI

> PITI stands for principal, interest, taxes and insurance — the four basic parts of a monthly mortgage payment. A worked example and how lenders use it.

URL: https://mortgage-math-us.com/glossary/piti/  
Last reviewed: 2026-10-29 · By the MortgageMath US Editorial team

## Quick answer

**PITI** stands for principal, interest, taxes and insurance — the four basic elements of a monthly mortgage payment. Principal and interest repay the loan; property taxes and homeowners insurance are often collected with the payment and held in an [escrow account](https://mortgage-math-us.com/glossary/escrow-account/) until the bills are due.

## Key facts

| Fact | Value | Source | As of |
|---|---|---|---|
| US median home value (used in the example) | $360,600 | [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25077?g=010XX00US) | 2024 ACS 1-year |
| US effective property tax rate | 0.89% | [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25103?g=010XX00US) | 2024 ACS 1-year |
| Average homeowners insurance premium | $1,522/yr | [Freddie Mac Research](https://www.freddiemac.com/research/insight/homeowners-insurance-costs) | 2023 data |
| Freddie Mac housing-cost guideline | 30% | [Freddie Mac My Home](https://myhome.freddiemac.com/blog/homebuying/how-much-can-you-afford) | Jan 22, 2026 |

## Example

*$361,000 home, 10% down, 30 years at 7.24%*

| Part | Monthly |
|---|---|
| Principal and interest | $2,214 |
| Property tax at 0.89% | $268 |
| Homeowners insurance ($1,522 a year) | $127 |
| **PITI** | **$2,609** |
| Private mortgage insurance | $162 |
| **Total payment** | **$2,771** |

With less than 20% down, [private mortgage insurance](https://mortgage-math-us.com/glossary/private-mortgage-insurance/) is added on top, and [HOA dues](https://mortgage-math-us.com/glossary/hoa-dues/), if any, usually are paid separately but still count when you qualify.

## How lenders use it

Lenders compare your full housing payment with your gross monthly income to get your [housing ratio](https://mortgage-math-us.com/glossary/housing-ratio/), then add other debts for the [debt-to-income ratio](https://mortgage-math-us.com/glossary/debt-to-income-ratio/). Freddie Mac suggests keeping housing costs below 30% of gross income; for this payment that means about $9,237 a month. Try your own numbers in the [mortgage payment calculator](https://mortgage-math-us.com/tools/mortgage-payment-calculator/).

## Sources

- [Freddie Mac Primary Mortgage Market Survey](https://www.freddiemac.com/pmms) — 30-year fixed rate, national weekly average (Week of Oct 29, 2026)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25077?g=010XX00US) — Median value of owner-occupied homes (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25103?g=010XX00US) — Effective property tax rate (median taxes ÷ median home value) (2024 ACS 1-year)
- [Freddie Mac Research](https://www.freddiemac.com/research/insight/homeowners-insurance-costs) — Average annual homeowners insurance premium (Freddie Mac borrowers) (2023 data)
- [Freddie Mac My Home](https://myhome.freddiemac.com/buying/breaking-down-pmi) — Typical PMI cost, low end; Typical PMI cost, high end (Oct 28, 2026)
- [Freddie Mac My Home](https://myhome.freddiemac.com/blog/homebuying/how-much-can-you-afford) — Freddie Mac guidance: housing costs below this share of gross income (Jan 22, 2026)
- [CFPB: What is PITI?](https://www.consumerfinance.gov/ask-cfpb/what-is-piti-en-152/)

_General information, not financial advice._