Terms And Phrases To Learn Before House Hunting
- By
Julia Austin
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PITI
This acronym stands for principal, interest, taxes, and insurance—which make up what you’ll pay every month to own this home. The principal is the original sum lent to you by the lender (for example, $300,000), the interest is the interest paid on that sum (if it’s, for example, four percent of $300,000, then divided by 12 months, that’ll be $1,000 a month), taxes on the property (this will vary based on where you live and can change yearly, but could be anywhere from one to eight percent of your property’s value), and homeowners insurance.
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