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Guide

What is PITI?

PITI is the common breakdown of a mortgage payment: principal, interest, taxes, and insurance. This guide explains what each part includes, how to estimate it, and what to check before using a mortgage payment calculator.

Mortgage payment calculator DTI calculator Mortgage payoff topic

Mortgage payment inputs to verify

  • Loan amount, note rate, and term.
  • Taxes, insurance, HOA, and PMI assumptions.
  • Escrow rules or reserves used by the lender.
  • Time horizon if comparing scenarios.

PITI components

  • Principal: the part of your payment that reduces the loan balance.
  • Interest: the cost of borrowing, calculated on the remaining balance.
  • Taxes: property taxes, typically escrowed and paid monthly.
  • Insurance: homeowners insurance (and sometimes flood or other required policies).

PMI or mortgage insurance

Private mortgage insurance (PMI) is common when the down payment is under 20%. FHA and some other programs use mortgage insurance premiums (MIP). The cost varies by program, down payment, and credit profile.

HOA dues

HOA dues are not part of PITI but are often added to the housing payment for affordability checks. Use the actual monthly HOA amount if applicable.

How to estimate taxes and insurance

  • Use a local property tax rate and recent assessments for the zip code.
  • Get a rough insurance quote from a carrier if possible.
  • Condo or flood-prone areas may need extra coverage.
  • Convert annual numbers to monthly amounts for the calculator.

Escrow changes to expect

  • Tax assessments can rise after purchase, increasing the escrow amount.
  • Insurance premiums can change at renewal.
  • Servicers may adjust escrow based on prior-year shortages or surpluses.

Why statements can differ

  • Escrow amounts can change after tax or insurance renewals.
  • Servicers may round differently than calculators.
  • PMI rules vary by program and lender.

PMI removal timing

If you put down less than 20%, PMI can add to the monthly payment. The removal rules vary by loan type. Keep your LTV threshold and any seasoning rules in mind when you model future payments.

HOA and special assessments

HOA dues are often separate from escrow and can change annually. If the HOA has upcoming special assessments, include them in your budget even if they are not part of PITI.

Checklist: verify your inputs

  • Confirm loan amount and down payment match your offer.
  • Use the note rate, not APR, for principal and interest.
  • Use current property tax and insurance estimates.
  • Add HOA and PMI if they apply to your scenario.
  • Keep the same assumptions when comparing offers.

Match the Loan Estimate

When you have a Loan Estimate, align the calculator inputs with the same monthly tax, insurance, PMI, and HOA figures. This keeps the PITI estimate consistent with what the lender is using for underwriting and DTI.

FAQ

Is PITI the full monthly housing cost?

It covers principal, interest, taxes, and insurance. If you have HOA dues or PMI, add them to get the full housing payment.

Why does my PITI change over time?

Taxes and insurance can rise, and escrow adjustments can change the monthly amount even when the principal and interest stay the same.

References

Next steps

Run the mortgage payment calculator Use the DTI calculator What counts in DTI

Educational use only. Not financial advice.

Last updated: 2026-02-08