PITI is an acronym that stands for principal, interest, taxes and insurance. A borrower pays back the principal over 30 years, which includes interest. The mortgage payment may not contain a provision for paying taxes and insurance to the lender, but many do. To determine an owner's monthly taxes and insurance prorations, the annual figure is divided by 12. All home owners pay taxes and insurance. Owners who buy into a planned unit development or a townhome / condo, also pay a homeowner association fee, which may or may not include insurance.
At the time of writing, Elizabeth Weintraub, DRE # 00697006, is a Broker-Associate at Lyon Real Estate in Sacramento, California.