FinanceIntermediateDelaware Exam
What does PITI stand for in mortgage calculations?
APrincipal, Interest, Taxes, InsuranceCorrect
BPrincipal, Investment, Title, Insurance
CPayment, Interest, Title, Indemnity
DPrincipal, Index, Term, Interest
Why Principal, Interest, Taxes, Insurance Is Correct
Answer A: Principal, Interest, Taxes, Insurance
PITI stands for Principal, Interest, Taxes, and Insurance — the four components of a typical monthly mortgage payment. Lenders use PITI to calculate housing expense ratios for loan qualification.
Exam Tip: Finance
Finance questions often involve calculations. Master the T-bar method, understand the difference between conventional and government-backed loans, and know key ratios like LTV and DTI.
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