Home carrying-cost glossary
The terms behind property tax, homeowners insurance, mortgage escrow, and affordability—defined in the same way TrueCarry uses them.
Core terms
- Assessed value
- The value a taxing authority uses before exemptions and levy rates. It may differ from purchase price or market value.
- Effective property-tax rate
- Annual property tax divided by home value. A $4,000 bill on a $400,000 home is an effective rate of 1.00%.
- Escrow
- Money a mortgage servicer collects monthly to pay property tax and insurance when due.
- PITI
- Principal, interest, property taxes, and homeowners insurance—the recurring housing payment before HOA, maintenance, and utilities.
- PMI
- Private mortgage insurance, often charged when a conventional loan exceeds 80% of the home's value.
- HO-3
- A common homeowners policy form. TrueCarry uses NAIC HO-3 state averages as a historical budgeting baseline, not as a quote.
- FEMA National Risk Index
- A relative natural-hazard risk measure. It helps provide county context but is not a carrier underwriting score.
- Reassessment
- A change in taxable assessed value after an event such as a sale, subject to state and local rules.
- Exemption
- A benefit that may reduce taxable value or tax if a homeowner qualifies and files correctly.
- DTI
- Debt-to-income ratio: monthly debt obligations divided by gross monthly income, used in affordability modeling.
How these definitions are used
Confidence: High for definitions; estimate confidence varies by page. Reviewed as of 2026-06-21.
Sources: U.S. Census Bureau ACS, NAIC Homeowners Insurance Report, FEMA National Risk Index, and reviewed state tax agencies. Each estimate page links its exact sources.
Read the full calculation methodology
Disclaimer: Estimates for budgeting only — not a tax bill, not an insurance quote, not legal or tax advice. Verify with the county assessor and a licensed professional before making financial decisions.