top of page

Principal Interest Taxes and Insurance (PITI)

The Principal, Interest, Taxes and Insurance (PITI) are the sum components of a mortgage payment. Specifically they consist of the principal amount, loan interest rate on your home's debt based off an annual percentage yield like 4.5% in most cases; property tax which is usually assessed by how much you owe annually to maintain ownership through grants with local or state government agencies- $1-$4k depending if it's residential or commercial real estate ; homeowners insurance -protects against physical damage that can occur to homes such as fire , break ins etc., private mortgage insurance premiums also protect for some risks but only come into play when someone defaults on their mortgages due to bankruptcy filing or death.

bottom of page