Definition
PITI stands for principal, interest, taxes, and insurance.
If you are comparing mortgage options, treat piti as one piece of the total cost and risk picture, not a standalone detail.
Why It Matters
It matters because it gives a fuller view of monthly housing cost than principal and interest alone.
Simple Example
A payment may include $1,900 principal and interest, $450 taxes, and $120 insurance.
How to Use This Term
When you see piti on a loan estimate, calculator result, or lender conversation, connect it to three practical questions: how it affects monthly payment, how it affects cash needed now, and how it affects flexibility later.