Finance

A borrower's monthly PITI payment includes:

APrincipal and interest only
BPrincipal, Interest, Taxes, and Insurance✓ Correct
CPrincipal, Interest, Taxes, and Title insurance
DPrincipal and insurance only

Explanation

PITI stands for Principal (loan repayment), Interest (cost of borrowing), Taxes (property taxes escrowed monthly), and Insurance (homeowner's insurance escrowed monthly). This is the total monthly housing payment used in debt-to-income ratio calculations.

Related Indiana Finance Questions

Practice More Indiana Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Indiana Quiz →