Which term refers to the property costs including principal, interest, taxes, and insurance?

The term that refers to the property costs including principal, interest, taxes, and insurance is PITI. This acronym specifically encompasses the four primary components of a homeowner's monthly mortgage payment.

• The principal is the original loan amount that is borrowed.

• Interest is the cost of borrowing that money, expressed as a percentage of the loan.

• Taxes refer to property taxes assessed by local governments to fund public services.

• Insurance typically refers to homeowner's insurance, which protects the property from various risks.

Understanding PITI is crucial for anyone involved in real estate, as it provides a comprehensive view of the financial obligations associated with home ownership. When potential buyers or homeowners calculate their monthly housing costs, considering each of these components is essential for budgeting and financial planning.

The other terms do not represent the same comprehensive set of costs. PMI, for example, stands for Private Mortgage Insurance and is required in certain situations when the down payment is less than 20% of the purchase price, but it does not include the other components. POA refers to Property Owners Association, which involves community management but does not relate to mortgage payments directly. HOA stands for Homeowners Association, which oversees community regulations and services, and again, it does not correspond to the broader