PITI is an acronym for principal, interest, taxes and insurance. In real estate, it's used by lenders to estimate your qualifications for a mortgage. One of the key variables in the formula is property taxes, which vary by location and individual home. But how do property taxes affect your PITI ratio? Here is a basic explanation to help:
Property taxes are calculated based on several variables. One of the variables is the value of your home, which can be more complicated than just the purchase price. A home's assessed value is the value decided by tax assessors and can be adjusted as often as once per year. Fair market value, however, is much more fluid and depends on the value of surrounding homes, the local economy and more.
In addition to home value, property taxes are determined by a local tax rate. You can find out your tax rate from your local tax assessor or municipality records online. Other factors like appraisal value can also affect your property taxes, especially if your professional appraisal is much higher or lower than the assessed amount.
Property taxes matter to lenders because they make up part of your PITI. This combination of numbers can help lenders determine your eligibility for a mortgage because it represents a large portion of your overall financial situation. Your property taxes combined with other expenses and your debt-to-income ratio allow lenders to determine how much money you can afford to borrow without risk to them.
Knowing your PITI can help you make more informed financial decisions when buying or refinancing a home. If you're interested in learning more, consulting a lender or tax professional is a great way to begin.
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First Albert would like to thank you for the opportunity to offer his services.
Albert originally from New York City enlisted to the U.S Marine Corps from 1992 to 2004 receiving the Navy & Marine Corps Achievement Medal Combat Valor serving in the Iraq War and earn a Bachelor Degree in Business Administration from University of Hawaii. Started getting involved in the Real Estate business from 2004 to present as a full time agent. Albert have found home owners and buyers really want two things from their REALTOR®, Executive Service and Results....
Albert specializes in the Los Angeles County, Ventura County and Orange County area and licensed in California. His services include being bilingual in Spanish, making it a point to keep his clients well informed at all time.
Albert vision of commitment is based on hard work, tireless determination, and a genuine love of helping people reach their goals with a successful tenure in the real estate industry. Albert know by sharing a strong work ethic, a tireless drive to succeed and a dedication to achieving goals, that anything in life is possible. For Albert, it is a Matter of Duty.
Albert's skills are Excellent Communication, Great Analytical, Critical Thinking ( thinking outside the box), Problem Solving Abilities, Strong Time Management, Organizational, Public Speaking, Negotiator, Team Player, Technology User.
That way, when you do meet, Albert can place his full concentration on your special needs and what's most important to you and your family. Together you and Albert will work as a team.
Albert is really looking forward to the very special opportunity to serve you in your Real Estate needs.
When the time comes for your next Real Estate decision, give Albert a call for a FREE consultation. You'll be glad you did.
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