While-You-Wait Investing: PITI & What Can You Afford?| Personal Capital
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Home>Daily Capital>Family Life>While-You-Wait Investing: PITI & How Much Home Can You Afford? (Video)

While-You-Wait Investing: PITI & How Much Home Can You Afford? (Video)


PITI, or the sum of Principal, Interest, Taxes, and Insurance is an important metric in deciding how much home you can afford. Personal Capital breaks this down in the time it takes for your phone to re-charge and gives you some guidelines for making a sound financial decision. A good rule of thumb is that 28% of your gross monthly income should be the maximum monthly cash outflow for costs associated with your house payments. To calculate your PITI ratio, use our calculator.

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The While-You-Wait video series goes over important financial topics when life puts us on hold. Reheating your lunch? Rebooting your computer? That’s the perfect time to watch. Leave a comment on what topics you’d like to see us cover next.

To learn more about the many considerations involved in purchasing a home, read our free First-Time Home Buyer’s Guide.

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The content contained in this blog post is intended for general informational purposes only and is not meant to constitute legal, tax, accounting or investment advice. You should consult a qualified legal or tax professional regarding your specific situation. Keep in mind that investing involves risk. The value of your investment will fluctuate over time and you may gain or lose money.

Any reference to the advisory services refers to Personal Capital Advisors Corporation, a subsidiary of Personal Capital. Personal Capital Advisors Corporation is an investment adviser registered with the Securities and Exchange Commission (SEC). Registration does not imply a certain level of skill or training nor does it imply endorsement by the SEC.

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