PITI - total monthly house payment. The total amount of your monthly house payment is sometimes called "PITI", short for Principle, Interest, Taxes and Insurance. Principle and Interest go toward paying off your loan. Taxes include property taxes on the home and Insurance includes home owners (hazard) insurance -- most lenders require you to pay 1/12th of these annual charges each month into an escrow account. Then when the annual bill(s) come due the lender pays them for you with your accumulated escrow funds.
If applicable, Private Mortgage Insurance and home owner association dues might also be included in your monthly payment. If the loan amount is greater than 80% of the purchase price, then PMI will probably have to be paid.
