Loan Origination Activities · 27% of the SAFE exammedium
Correct answer: Principal, Interest, Taxes, Insurance — it represents the total monthly housing payment used in DTI calculations
PITI stands for Principal, Interest, Taxes, and Insurance. It represents the total monthly housing expense and is used to calculate the front-end debt-to-income ratio. Lenders use PITI to determine if the borrower can afford the proposed mortgage payment.
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