PITI stands for the four components of a typical mortgage payment: Principal and Interest (the loan repayment itself, following the amortization schedule) plus property Taxes and homeowner’s Insurance. Lenders often collect the taxes and insurance into an escrow account and pay those bills on your behalf. Some lenders add association dues, making it “PITIA.”
Lenders look at full PITI, not just principal and interest, when they judge how much you can afford. Landlords should do the same: budgeting only the principal-and-interest portion understates the true monthly cost and can make a property’s cash flow look healthier than it is.