In mortgage calculations, which of the following is NOT included in the PITI calculation?

The PITI calculation includes the four primary components of a mortgage payment: Principal, Interest, Taxes, and Insurance. Principal refers to the portion of the payment that reduces the loan balance, Interest is the cost of borrowing that loan, Taxes encompass property taxes assessed by local governments, and Insurance typically includes homeowners' insurance and, when applicable, private mortgage insurance (PMI).

Utility payments, on the other hand, are not part of the PITI calculation. These expenses, which can include electricity, water, and gas, are separate costs incurred by homeowners and do not factor into the monthly mortgage payment used in PITI. Understanding this distinction is crucial because it helps borrowers and loan officers assess the full financial obligation of homeownership, while PITI specifically focuses on the costs directly related to securing and maintaining the mortgage.