PITI Workbench glossary
Key terms
In short
These terms describe the pieces of a monthly housing payment, each with a primary source.
Last reviewed against the primary sources listed below.
- Escrow account
- An account your servicer uses to collect part of each payment and pay property taxes and insurance for you. Source: CFPB: What is an escrow or impound account?
- Escrow shortage
- A gap found at the annual review when the escrow balance will not cover upcoming tax and insurance bills. Source: CFPB Regulation X 1024.17: Escrow accounts
- Private mortgage insurance
- Insurance on many conventional loans with a small down payment that protects the lender, not you. Source: CFPB: What is private mortgage insurance?
- Housing expense
- The monthly total of principal, interest, taxes, insurance, mortgage insurance and dues that lenders use to qualify you. Source: CFPB: What is a debt-to-income ratio?