We do seem to love our acronyms in the home lending business. Here are a few of the more common ones that are useful to know:
PITI stands 
for principal, interest, taxes and insurance. It’s everything that’s included in your monthly house payment.
GFE means good faith estimate. As a lender, I’m required to provide you with a good faith estimate of what your home loan will cost you both to acquire the loan and to maintain ownership of the home.
DTI is short for debt-to-income ratio, one of the key measures of how much you can afford to pay each month — and, therefore, how much you can afford to borrow.
PMI is private mortgage insurance, required for home buyers making a down payment of less than 20 percent.
Are there other lending terms you don’t understand? Give me a call and I’ll be happy to go over them with you. 303-696-6933.
