What does PITI consist of? Breaking Down your monthly mortgage payment.

PITI is the handy acronym for your monthly mortgage payment. It’s pronounced like the word “pity” and the letters stand for the four parts of that monthly payment:

• P stands for Principal That’s the part of the monthly payment used to pay down the balance of the loan. Your monthly principal payments, plus your down payment, add up to the equity you have in your home.
• I stands for Interest This is what you pay the lender for the privilege of borrowing the money.
• T stands for Taxes These are the property taxes you pay on the value of the land and building.
• I stands for Insurance This refers to both homeowner’s insurance and mortgage insurance, which is generally required when your down payment is less than 20%.

The monthly PITI payment is compared to your monthly gross income as part of the process of approving your mortgage loan.  This determines your debt to income level which helps determine your ability to qualify for a mortgage. The Richard Woodward Mortgage Team is here to help you understand your mortgage options and provide you the best.  You learn more about different loan programs here.

We want to put together a solution for your situation. Please contact us today if you have questions about any part of the home buying or refinancing experience…and best wishes in this and all your endeavors!

Richard Woodward, NMLS 217454

Your Local, Direct, 5 Star Rated Mortgage Lender, Specialty Lending Manager

Office: (214) 945-1066

mortgageprosus.com/5-star-reviews

Service First Mortgage NMLS 166487

6800 Weiskopf Ave #200, McKinney, TX 75070                                           

Licensed by the Texas Department of Savings and Mortgage Lending (SML) Mortgage Banker Registration. Service First Mortgage is an Equal Housing Lender. This is not an offer of credit or commitment to lend. Loans are subject to buyer and property qualification. Rates and fees are subject to change without notice.