Finance
A Florida lender requires 'PITI' payments from a borrower. The acronym PITI stands for:
APrincipal, Interest, Taxes, and Insurance✓ Correct
BPrincipal, Interest, Title, and Improvements
CPremium, Interest, Title, and Insurance
DPayment, Interest, Title, and Inspection
Explanation
PITI stands for Principal, Interest, Taxes, and Insurance. This represents the full monthly payment that includes: loan principal, interest, property tax escrow, and homeowner's insurance (and flood insurance if required). Lenders use PITI to calculate debt-to-income (DTI) ratios for qualifying borrowers. If PMI is required, it's sometimes included making the acronym PITIA.
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