PASS GEORGIA
REAL ESTATE EXAM PREPGEORGIA REAL ESTATE EXAM GLOSSARY
PITI stands for principal, interest, taxes, and insurance, the four common components included when estimating a borrower's total monthly housing payment.
Real Estate Calculations
Mortgage repayment
Define, distinguish, apply, retrieve
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PASS GEORGIA
REAL ESTATE EXAM PREPGEORGIA REAL ESTATE EXAM
GLOSSARY TERM GUIDEBuild the complete exam definition
Learn the rule, separate it from the nearest distractor, then apply it to a Georgia fact pattern.
What does PITI mean?
PITI stands for principal, interest, taxes, and insurance, the four common components included when estimating a borrower's total monthly housing payment.
How do you separate the nearest exam answer?
Principal and interest repay the loan. Taxes and insurance are property-related charges that a lender may collect through escrow. PITI does not automatically include every ownership cost.
What changes or stays the same in Georgia?
Georgia tax and insurance amounts vary by property and location. Use only the figures supplied in an exam problem and convert annual amounts to monthly amounts consistently.
Monthly principal and interest are $1,650, annual taxes are $3,600, and annual insurance is $1,200. PITI is $1,650 + $300 + $100 = $2,050.
Do not add annual tax and insurance figures directly to a monthly loan payment.
PASS GEORGIA
REAL ESTATE EXAM PREPGEORGIA REAL ESTATE EXAM
GLOSSARY TERM GUIDERetrieve the rule under exam conditions
Answer before reading the explanation. Then explain why every distractor belongs to a different term.
A buyer's monthly principal and interest is $1,480. Annual property taxes are $2,880 and annual homeowners insurance is $1,080. What is the monthly PITI?
- A
$5,440
- B
$1,720
- C
$1,570
- D
$1,810
PITI adds monthly principal and interest to one month of taxes and insurance. $2,880 divided by 12 is $240 and $1,080 divided by 12 is $90, so PITI is $1,480 plus $240 plus $90, or $1,810. Adding the annual figures straight to the monthly payment gives $5,440, the classic setup error.
Mark each box only when you can perform the skill without looking.
I can define the term in one precise sentence.
I can separate it from the closest look-alike.
I can explain the Georgia rule or confirm that the national rule applies.
I can answer the practice check and explain every option.
PASS GEORGIA
REAL ESTATE EXAM PREPGEORGIA REAL ESTATE EXAM
GLOSSARY TERM GUIDEConnect the term to the wider exam
Use these relationships to move from isolated recall to a connected exam model.
Real Estate Calculations complete lesson
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