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What is PITIA in Residential Real Estate? | Fridays with Fred

As a long time Orange County Real Estate company we’ve frequently used the term PITIA during the process of helping buyers to find homes for sale.

Although PITIA might seem confusing to some people it’s actually an easy Real Estate term to understand because it means the following:

P – Principal Amount

This is the maximum monthly amount that you feel comfortable paying for the mortgage on your home.

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I – Interest

Every mortgage loan will have interest that has to be paid; "I" stands for the interest that you can expect to pay on your mortgage loan each month or year.

P – Property Taxes

As a home owner you can expect to pay property taxes either twice a year or annually.

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We feel it’s important to tell all of our clients what the property taxes they can expect to pay just so they are not surprised when the time comes for them to make this payment. Typically though, it's included in the impounds of your mortgage payment by your lender. If this is the case, it will be fully disclosed in your loan documents.

I – Homeowners Insurance

Yes, you will have to pay homeowners insurance.

It’s an important part of any homeowners life because it will help to protect your home and finances from natural disaster or from being held liable due to any accidents that occur in your home.

A – Association Dues

Last of all but most important as someone who is planning home ownership, especially in Orange County, you can expect to pay homeowners association dues if you move to a community that has amenities like a swimming pool, spa, tennis court or yard maintenance.

Homeowner’s association dues may seem like an inconvenience to some but they are necessary to pay especially if you live in one of Orange County’s many planned communities. If you are buying a condo, or most homes in South Orange County, expect to pay association dues.

To learn more about what to expect when purchasing a home in Orange County or to view homes for sale in the area contact Fred Sed & Associates today by calling us at (949) 272-0125.

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