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

in Financial Planning by

 

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.

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.

Read the Free Guide

The following two tabs change content below.
Personal Capital

Personal Capital

Better financial lives through technology and people.

Leave a Reply

Your email address will not be published.

Disclaimer. This Website may contain links to third-party websites. These links are provided solely as a convenience to you and does not imply an affiliation, sponsorship, endorsement, approval, investigation, verification, or monitoring by PCAC of the contents on such third-party websites. Please be advised that PCAC is not responsible for the content of any website owned by a third party.