PITI is an acronym describing the elements that make up your monthly mortgage, and it stands for the sum of monthly principal, interest, taxes and insurance. So, what’s the first thing to consider when it comes to your monthly payments? PITI. For example, maybe you can afford a down payment on an $800,000 home, but the monthly payments will be too much of a strain. Your monthly mortgage, fees, taxes, insurance, homeowner association (HOA) fees and other associated costs are all line items on the home-buying bill.Īll of these should factor into your overall budget for purchasing a home. You also need to factor in all the expenses associated with purchasing, maintaining and keeping the home. The cost of the initial down payment isn’t the only expense you’ll need to calculate upfront. There are a lot of expenses involved in buying a home. Since buying a home is likely the largest purchase most of us will ever make, there are several aspects to consider when answering this question. This is perhaps the most important question to ask yourself when it comes to buying your home: How does this purchase fit into your overall finances? If you’re one of them, what type of house should you buy? As you browse listings and search for your perfect property, you’re probably trying to settle on exactly how much you can afford.

Many people are considering purchasing a home. Calculating your PITI number will help you determine how much house you can afford. This is what makes up your monthly mortgage payment. PITI stands for principal, interest, taxes and insurance. Your PITI number helps determine your housing budget. PITI (principal, interest, taxes and insurance) is what makes up your monthly mortgage payment.

Piti mortgage calculator pmi