2026 XINNIX Ground School Mortgage Practice Test - Complete Preparation

PITI represents the four main parts of a typical monthly mortgage payment: principal, interest, property taxes, and homeowners insurance. Principal lowers the loan balance over time, and interest is the lender’s charge for borrowing. Taxes are what you pay to the local government for property ownership, and insurance here refers to homeowners insurance that protects the home against damage or loss. Mortgage insurance (often called PMI) is a separate protection for the lender, usually required when the down payment is smaller. It isn’t part of the four PITI components, though it may appear as an additional monthly cost in some disclosures. So the item that does not belong in PITI is mortgage insurance.