Finance
In New York, 'PITI' refers to the four components of a monthly mortgage payment, which are:
APrincipal, Interest, Title insurance, and Inspection fees
BPrincipal, Interest, (property) Taxes, and Insurance (homeowners and/or mortgage insurance)✓ Correct
CPurchase price, Interest rate, Title fee, and Insurance premium
DPrepayment, Interest only, Term, and Income ratio
Explanation
PITI stands for Principal (repayment of the loan balance), Interest (the cost of borrowing), Taxes (property taxes escrowed monthly), and Insurance (homeowner's insurance and, if applicable, PMI or MIP). Lenders use PITI as the total monthly housing expense when qualifying borrowers and calculating the housing expense ratio.
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