Q: When mortgage lenders refer to "PITI" what exactly are they referring to?
A: PITI is Principal, Interest, Taxes, and Insurance- the components of a monthly mortgage payment.
Q: How does the annual percentage rate differ from the interest rate?
A. The annual percentage rate (APR) is the effective rate of interest for a loan if the calculation is based on the original loan amount less the closing costs. This is the rate that will appear on your preliminary Truth In Lending disclosure. Please note that the APR is higher than the interest rate on your Mortgage Note and the note rate is your true interest rate.