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 until the bills are due.
Key facts
$360,600
US median home value (used in the example)
US Census Bureau, American Community Survey 2024 1-year · 2024 ACS 1-year
0.89%
US effective property tax rate
US Census Bureau, American Community Survey 2024 1-year · 2024 ACS 1-year
Example
| 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 is added on top, and 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, then add other debts for the 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.
Sources
- Freddie Mac Primary Mortgage Market Survey — 30-year fixed rate, national weekly average (Week of Oct 29, 2026)
- US Census Bureau, American Community Survey 2024 1-year — Median value of owner-occupied homes (2024 ACS 1-year)
- US Census Bureau, American Community Survey 2024 1-year — Effective property tax rate (median taxes ÷ median home value) (2024 ACS 1-year)
- Freddie Mac Research — Average annual homeowners insurance premium (Freddie Mac borrowers) (2023 data)
- Freddie Mac My Home — Typical PMI cost, low end; Typical PMI cost, high end (Oct 28, 2026)
- Freddie Mac My Home — Freddie Mac guidance: housing costs below this share of gross income (Jan 22, 2026)
- CFPB: What is PITI?
Last reviewed Figures are checked against the sources above. Read our editorial policy. This page is general information, not financial advice — see the disclaimer.