What is PITI

Be very careful when comparing monthly mortgage payments. Ask to see the payments in writing from each mortgage professional that provides you a quote. This way you can compare PITI (Principal, Interest, Taxes, and Insurance) payments with everything right in front of you so that there is no confusion. Sometimes, one lender may quote you a payment and even have a homeowners association (if applicable) due worked into your monthly PITI payment and another lender may not. This is why you should always request for the payment quote in writing and request it be broken down so that you can see what your monthly payment will consist of to make sure you are comparing "apples to apples".

When lenders require PITI reserves they may have seasoning requirements. THis means the funds need to have been inplace for a certain period of time like 30 or 60 days. If they allow sourced funds this means that the funds can come from anywhere and be deposited before close into a checking or savings account with no seasoning time required.

Although each lender's requirements on PITI reserves will vary, by their individual programs, some will allow the proceeds from a Cash Out Refinance to cover the PITI Reserve requirements.

PITI (Principal, Interest, Taxes, and Insurance)is the abbreviation used to describe all the components of a mortgage payment. When you are quoted a payment when applying for a loan make sure it is not just the "PI" which is just principal and interest because then you will need to add on the monthly tax and insurance to get a true monthly cost.

Some borrowers may not wish to have their payment include PITI. when shopping a mortgage loan, it is advised that the borrower maintain a sound understanding of the monthly costs of taxes and insurance(The TI portion), and look only at the principal and interest(The PI portion) of the payment. This will avoid confusion between you and your loan officer or mortgage broker with respect to what you are actually paying on a monthly basisi for your mortgage(PI) - which is really the only part of the PITI a loan professional is affecting.

Tips for lowering your homeowners insurance - The biggest tip to lowering your homeowners insurance is to shop around. Acquiring homeowners insurance is the same as shopping for anything else, it is in your best interest to check with several places before you make your final decision. Ask your mortgage professional for a list of places to talk to, they might no someone who has the best current rates for homeowners insurance in [city].

Some insurance companies do not use credit profile for their homeowners programs. Ask your agent if this is a factor for your premium that you will be quoted.

Homeowners can lower their total insurance bill by insuring their home and automobiles through one company. Insurance companies usually give big discounts to customers that use them for all their insurance needs.

To lower your homeowners insurance and keep your rates down make sure that you do not file unecessary claims. Sometimes it may be cheaper to fix something at your house yourself than to file a claim, pay the deductible and then have your premiums increase due to having claims in your history. Look into the problem(s) a little bit before calling your insurance company and telling them about the damage. This may save you money now and also down the road.

Over insurance is one of the biggest waste in home owner insurance. Some lender banks require home owners to purchase insurance coverages on their homes for the loan amounts, rather than for the full replacement costs of the homes. In most states, such practice is outlawed. Check with your state to see if you can purchase insurance coverage for only the replacement cost of your home, which in most cases is less than the loan amount.

Be sure to ask your Preferred Insurance Agent about multi-line discounts. Many times a small life insurance policy can be added at almost no additional cost if you already have Homeowner's and Automobile policies with the same insurance company.

Homeowner's Insurance premiums are generally more expensive for rural properties. Most suburban homes have fire hydrants near by making the property a bit less risky to the insure.

If you install a home alarm you may be able to reduce your homeowners insurance.

As with any other type of insurance policy, the higher your deductible is, the lower your annual (or monthly) insurance premium will be.

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