Periodic, typically monthly, payment required by an amortizing loan that includes Escrow deposits. Each periodic payment includes a principal and interest payment plus a contribution to the escrow account set up by the lender to pay insurance premiums and property taxes on the mortgaged property.
Principal, Interest, Taxes, and Insurance Payment (PITI)
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The periodic (typically monthly) payment required by an amortizing loan that includes Escrow deposits. Each periodic payment includes a Principal and Interest Payment plus a contribution to the escrow account set up by the lender to pay insurance premiums and property taxes on the mortgaged property.
Example: Abel's monthly PITI payment is $950. This includes $750 for Principal and Interest $150 for Ad Valorem Taxes and $50 for insurance.
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 | Business Dictionary. Dictionary of Business Terms. Copyright © 2000 by Barron's Educational Series, Inc. All rights reserved. Read more |
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| Real Estate Dictionary. Dictionary of Real Estate Terms. Copyright © 2004 by Barron's Educational Series, Inc. All rights reserved. Read more |
