When you are buying a home and or obtaining a mortgage you will likely hear the term PITI or P.I.T.I. This term refers to Principal, Interest, Taxes and Insurance. Banks and mortgage companies typically use the monthly PITI amount to qualify you for a home loan.
Here’s how PITI is usually calculated. The lender calculates your monthly principal and interest payment and then add to it the cost of the monthly homeowners insurance and adds the monthly real estate taxes for the property you are buying. The combination of these is the PITI. For example, if you had a loan payment of $1000 a month for the loan principal and interest and you had a monthly insurance of $100 and monthly real estate taxes, your PITI would be $1,200 per month.
If you are thinking about buying a seller a home, give us a call at 740-397-7800.
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The Sam Miller Team
REMAX Stars Realty
710 South Main Street
Mount Vernon, Ohio 43050
Call 740-397-7800
http://www.SamMillerSells.com