This stands for the principal, interest, taxes (real estate) and insurance (fire): the four costs normally included in a monthly mortgage payment The monthly payment for the principal and interest go to the lender to repay the debt while the real estate taxes and fire insurance ego into the escrow or custodial account (see Escrow Account) to pay these amounts when due
Principal, Interest, Taxes, and Insurance - the four elements of a monthly mortgage payment; payments of principal and interest go directly towards repaying the loan while the portion that covers taxes and insurance (homeowner's and mortgage, if applicable) goes into an escrow account to cover the fees when they are due
the four components that (for most homeowners) are included in the monthly mortgage payment Principal and interest are the portions of the payment assigned to repay the mortgage itself; taxes and insurance are paid by your lender into a special escrow account to pay for homeowners insurance and property taxes
PITI stands for principal, interest, taxes, and insurance An "impounded" loan means that the monthly payment covers all of these, and perhaps mortgage insurance, if your loan so calls for it If one does not have an "impounded" account, then the lender still calculates these amounts separately and uses it as part of determining one's debt-to-income ratio