What is PITI?

Principal + Interest + Taxes + Insurance. These four components make up your total monthly housing payment. If you put less than 20% down, PMI (Private Mortgage Insurance) is added as a fifth cost.

The 28/36 Rule

Lenders use two ratios to qualify borrowers. The front-end ratio (28%) caps housing costs at 28% of gross monthly income. The back-end ratio (36%) caps all debt payments at 36%. Exceeding these limits reduces approval odds and signals financial stretch.

$435,115
20% ($87,023)
6.300%
1.2%
$1,500
$0
$75,000
Total Monthly Payment
$2,715
Over-extended

Housing costs exceed 36% of gross income. Most lenders will flag this ratio.

Monthly Breakdown

Principal & Interest $2,155
Property Tax $435
Home Insurance $125
Total $2,715

Debt-to-Income

28%
36%
Front-end DTI (housing / income) 43.4%
Monthly gross income $6,250

Lifetime Cost

Loan amount $348,092
Total interest paid (30 yrs) $427,563
Total cost of ownership $1,064,319
Current mortgage rate sourced from FRED (Freddie Mac Primary Mortgage Market Survey). Median home price from Redfin. This calculator is for educational purposes only and does not constitute financial advice.