Description

Principal, interest, taxes, and insurance (PITI) refers to the total monthly payment that a borrower makes on a mortgage. It includes the principal amount borrowed, the interest charged on that amount, property taxes, and homeowners insurance. Understanding PITI is essential for borrowers to accurately assess their financial obligations in homeownership.

Interpreter Notes

Interpreters should be aware that PITI is a technical financial term often used in mortgage discussions. It's important to maintain a formal register and avoid colloquial expressions. Common variants that may arise include 'pago mensual' or 'cuota hipotecaria', but these should be avoided in favor of the glossary term for clarity.

Example Sentences

EN: The lender explained that the PITI would determine how much the borrower could afford each month.

ES: El prestamista explicó que el PITI determinaría cuánto podría pagar el prestatario cada mes.

Common Interpreter Mistakes

Confusing PITI with other mortgage terms like 'APR'; misinterpreting the components of PITI; using informal language instead of the formal term.