Lori David Boone, Associate Broker, MRP, SRS, RENE, eXp RealtyPhone: (334) 669-9698
Email: [email protected]
Email: [email protected]
PITI, which is short for "principal, interest, taxes and insurance," is an essential term to know for anybody seeking a mortgage loan. The acronym refers to the relationship between these four numbers expressed in a ratio and can tell lenders about your financial status. Here is a breakdown of the term and why it matters to potential homeowners and borrowers:
Principal
The principal is the amount of a loan before adding any interest. When you make a down payment on a mortgage or loan, the amount is deducted from the principal. For example, if you make a 20% down payment on a $250,000 mortgage toward the principal, the remaining principal amount would be $200,000.
Interest
Interest rates are based on a percentage and represent the amount of money you will pay in addition to your principal amount. Interest rates are considered a fee for borrowing the money, as they go back to the lender as profit. The percentage may remain the same throughout the life of the loan, but the amount you pay will gradually decrease as the principal amount decreases.
Taxes
Property taxes support your local community and pay for things like emergency services, infrastructure maintenance and public schools. Property tax amounts vary from one location to another and can also change from year to year. To find out how much your property taxes are every year, you can find the value of your home through a professional appraisal.
Insurance
Homeowners insurance is not always required by mortgage lenders, but proof of coverage is a common condition of your loan. Insurance rates vary both by location and provider.
Knowing your PITI means knowing how large of a mortgage you can afford. It also means having a more in-depth awareness of your financial situation, making it possible to find the best opportunities and homes in your price range. Remember these key terms and keep them in mind when considering mortgage options and your home search.
Lori David Boone is a highly skilled Associate Broker with advanced real estate designations, including GRI (Graduate, REALTOR® Institute), MRP (Military Relocation Professional), SRS (Seller Representative Specialist), and RENE (Real Estate Negotiation Expert). Lori leverages her extensive legal background and market knowledge to provide high-quality representation for clients buying or selling real estate in the River Region. Her approach is built on strong negotiation skills, marketing expertise, and a commitment to smooth transactions. Currently affiliated with eXp Realty, Lori specializes in the River Region real estate market (Montgomery, Pike Road, Prattville and Wetumpka) , providing comprehensive services from initial consultation to closing.
Lori’s real estate career is distinguished by her dedication to market research and staying updated on the latest industry trends and best practices. Her expertise extends beyond traditional real estate roles, as she is skilled in property listing, market analysis, and creating effective promotional strategies that drive results. She takes pride in building lasting relationships with clients, listening closely to their needs, and delivering personalized solutions that make the buying or selling process as stress-free as possible.
In addition to her real estate credentials, Lori holds a Juris Doctorate and a Bachelor of Arts in English and Mass Communication, which further strengthens her communication and negotiation skills. These qualities, combined with her commitment to excellent service, make her a trusted advisor for both first-time buyers and seasoned investors.
With a passion for helping her clients achieve their real estate goals, Lori continues to be a top choice in the River Region for anyone seeking professional, reliable, and results-driven real estate services.
Reach out to Lori for personalized real estate services backed by a comprehensive understanding of the market and the highest professional standards.