Abbreviation for the major expenses that make up a mortgage payment: principal (the amount borrowed), interest, (property) taxes, and (homeowners' and private mortgage) insurance. The total amount of PITI is normally quoted on a monthly basis and is a useful gauge to determine the affordability of a mortgage. Mortgage lenders generally prefer the PITI to be equal or less than 28% of a borrower’s gross monthly income. See Investopedia.
[Last updated in September of 2020 by the Wex Definitions Team]