GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

How often this word is used
 
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62% - Often

Principal, Interest and Taxes


Synonyms:principal interest and taxes
Acronyms &
abbreviations:
PIT
Filed Under: financial-banking, mortgages, taxation
Tags: loan, mortgage, mortgage lender, taxes
 

Definition of principal, interest and taxes (PIT)

principal, interest and taxes (PIT)
1. An acronym for principal, interest, and taxes which are components of a monthly mortgage payment.

Related Terms and Acronyms:

  • gross debt service (GDS)   The total monthly mortgage (or rent) payments, property taxes, utilities and maintenance fees as a percentage of gross monthly income.
      ➥  Used by mortgage lender underwriters to determine one's ability to qualify for a mortgage loan.
  • interest (IN, int)   Money paid for the use of borrowed funds, usually expressed as an annual percentage.
      ➥  Bank account transaction code.
  • loan   Letting another party use something of value temporarily.
  • mortgage (mtg)   A mortgage is a contract stipulating a specific real property, typically a residence or building, as collateral for a loan. The mortgage incurs a rate of interest that varies according to term and other features.
  • principal   The original balance of money lent on an outstanding loan and fees, excluding interest. Also the remaining balance of a loan, excluding interest.
  • principal and interest (P&I, PI)   Acronym for the elements of a mortgage payment: principal and interest.
  • principal, interest, taxes, and insurance (PITI)   Acronym for the elements of a mortgage payment: principal, interest, taxes and insurance.
  • property tax   A levy by a city on real estate and personal property whose amount varies depending on the property's value.
  • step-rate mortgage   A fixed-rate home loan on which payments are lower at the beginning, typically for two years, and which then rise.
  • tax (TX)   A levy paid by an individual or entity that is collected by a government.

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