Every piece of the monthly housing cost, itemised
PITI, and what sits outside it
In short
PITI stands for principal, interest, taxes and insurance, the four parts of a typical monthly mortgage payment when taxes and insurance are collected through escrow. Mortgage insurance is often added to the same payment. HOA dues, utilities and maintenance are not part of PITI but are part of what owning costs each month.
Last reviewed against the primary sources listed below.
The four letters
| Letter | What it is | Paid to |
|---|---|---|
| P | Principal: the part that lowers the balance | Servicer |
| I | Interest: the cost of borrowing | Servicer |
| T | Property taxes, held in escrow | Servicer, then the county |
| I | Homeowners insurance, held in escrow | Servicer, then the insurer |
Outside PITI
- HOA or condo dues, paid to the association.
- Utilities and maintenance.
- Optional coverage you buy separately.
How lenders use it
Lenders compare the housing payment with your income when they look at debt-to-income ratios, and many include HOA dues in that housing figure.
Line-item questions
Are HOA fees included in a mortgage payment?
Usually not. HOA dues are normally paid directly to the association, but lenders generally count them when checking whether you can afford the home.
What is included in a monthly mortgage payment?
Principal and interest, plus property taxes and homeowners insurance if they are escrowed, and mortgage insurance if your loan requires it.