Definitions for "PITI Ratio"
Keywords:  deciding, ratio, principal, owe, income
The amount paid by the borrower for principal, interest, taxes and insurance, divided by repayment income. (last updated 03/19/2004)
Also called an "income-to-debt" ratio. It is used by lenders in deciding whether to give you, the borrower, a loan. It compares the amount of your monthly income to the amount you will owe each month in principal, interest, real state tax and insurance on that mortgage. (compare to Qualifying Income Ratio)
the ratio of principal, interest, taxes and insurance to gross income.