What does PITI stand for?

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Multiple Choice

What does PITI stand for?

Explanation:
PITI refers to the monthly mortgage payment components. It stands for Principal, Interest, Taxes, and Insurance. The principal is the portion that reduces the loan balance, while the interest is the lender’s charge for borrowing. Taxes are property taxes, often collected in escrow by the lender, and insurance is homeowners insurance, also commonly paid through escrow. These four parts together make up the typical monthly housing payment. The other options don’t fit because they either replace a needed component (Principal with Payment, or Insurance with another term) or substitute Income for Interest, which isn’t part of the mortgage payment.

PITI refers to the monthly mortgage payment components. It stands for Principal, Interest, Taxes, and Insurance. The principal is the portion that reduces the loan balance, while the interest is the lender’s charge for borrowing. Taxes are property taxes, often collected in escrow by the lender, and insurance is homeowners insurance, also commonly paid through escrow. These four parts together make up the typical monthly housing payment. The other options don’t fit because they either replace a needed component (Principal with Payment, or Insurance with another term) or substitute Income for Interest, which isn’t part of the mortgage payment.

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