Reviewed by Jeff Shin, NMLS #1041652. Updated .
Also called: principal, interest, taxes, and insurance, PITIA.
What each part covers
- Principal. The part of the payment that pays down what you borrowed.
- Interest. What the lender charges to lend you the money.
- Taxes. Property taxes, often collected monthly into an escrow account.
- Insurance. Homeowners insurance, and mortgage insurance if your loan has it.
- Association dues. HOA or condo fees. They are usually paid to the association directly, but lenders still count them.
The CFPB puts it as a formula: principal, plus interest, plus mortgage insurance if any, plus escrow for taxes and insurance, equals the total monthly payment.
Why lenders use the full payment
A payment quote that shows only principal and interest can look a few hundred dollars cheaper than what you will actually pay. Your debt-to-income ratio uses the full housing payment. A DSCR loan divides rent by PITIA. On a condo or a two-flat, the dues and taxes can decide the approval. See how HOA dues change the real payment.
Where to find it on your Loan Estimate
The Projected Payments table on page 1 of the Loan Estimate splits the payment into principal and interest, mortgage insurance, and estimated escrow, then shows the total. Dues paid outside escrow are listed separately, so add them yourself.
Related terms
- Escrow account
- Debt-to-income ratio (DTI)
- Debt service coverage ratio (DSCR)
- Private mortgage insurance (PMI)
Related on BankPricer
Sources
Definitions on this page are summarized from the agencies that set the rules. Lenders can add stricter requirements. Checked October 7, 2026.
Not sure which of these applies to you?
That is usually the actual question. Send the situation rather than the product name — purchase or refinance, primary or investment, price range, and timeline — and you get the structures that fit, with what each one costs.