PITI is the standard mortgage-payment acronym: Principal (loan balance reduction), Interest (finance charge), Taxes (property taxes, typically escrowed), and Insurance (homeowner’s and, when applicable, mortgage insurance). Lenders use PITI to calculate housing ratios and total debt-to-income requirements during underwriting—core content in the financing section of Maryland’s pre-licensing course.
[References: Maryland 60-Hour Principles & Practices Course — Real Estate Financing and Math for Real Estate modules; Conventional/FHA/VA underwriting concepts included in curriculum standards., , ]
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