We understand how frustrating it can be to search for a home in Austin. Half the battle is learning the key terms and what they mean in regards to Texas real estate. So each week we bring you Key Term Tuesday – our way of helping you decode the industry jargon that keeps you from owning your home search.
What is PITI?
P-I-T-I is an acronym for Principle, Interest, Taxes and Insurance. It’s shorthand for the four elements of your mortgage payment usually expressed on a monthly basis.
P = the amount of your loan payment that applies to your principle pay down
Interest = the amount of your loan payment that applies to the interest you owe
Taxes = the amount of your property tax payment
Insurance = the amount of your homeowner’s insurance premium
Lenders will use this number to determine how large a mortgage you can afford.
Looking for a Real Estate Expert?
Our team has a combined 55+ years of experience helping home buyers understand the r. Check out our approach to Buying a Home in Austin to learn more about our team and how we work. Then, call us at (512) 827-8323 or email us at info@11OaksRealty.com to schedule a no obligation consultation.