{"id":3757,"date":"2019-03-08T09:00:47","date_gmt":"2019-03-08T14:00:47","guid":{"rendered":"https:\/\/staging.migonline.com\/blog\/?p=3757"},"modified":"2023-05-22T19:42:20","modified_gmt":"2023-05-22T23:42:20","slug":"learn-how-to-calculate-monthly-mortgage-piti-payments","status":"publish","type":"post","link":"https:\/\/migonline.com\/blog\/2019\/03\/08\/learn-how-to-calculate-monthly-mortgage-piti-payments\/","title":{"rendered":"Learn How to Calculate Monthly Mortgage PITI Payments"},"content":{"rendered":"<p>The four components of a <a href=\"https:\/\/migonline.com\/blog\/2022\/10\/03\/understanding-your-home-loan-payments\/\">monthly mortgage payment<\/a> are principal, interest, taxes and insurance \u2013 also know as your\u00a0<a href=\"https:\/\/migonline.com\/piti\">PITI payment<\/a>. Each month you will repay your <a href=\"https:\/\/migonline.com\/\">mortgage lender<\/a> a portion of your loan\u2019s principal balance (the loan amount) and\u00a0accrued interest, plus payments that will be put into an <a href=\"https:\/\/migonline.com\/escrow-accounts\">escrow account<\/a> from which your lender will pay your annual property taxes and <a href=\"https:\/\/migonline.com\/mortgage-insurance\">homeowner\u2019s insurance<\/a> policy premiums.<\/p>\n<h3>How to Calculate PITI Payments<\/h3>\n<p>On the surface, calculating PITI payments is\u00a0simple:<\/p>\n<ul>\n<li>Principal Payment + Interest Payment + Tax Payment + Insurance Payment<\/li>\n<\/ul>\n<p>However, calculating each of these factors can be slightly more complicated.<\/p>\n<figure id=\"attachment_2077\" aria-describedby=\"caption-attachment-2077\" style=\"width: 600px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-2077\" src=\"https:\/\/staging.migonline.com\/blog\/wp-content\/uploads\/2018\/06\/Five-Simple-Ways-to-Teach-Kids-about-Money-02.jpg\" alt=\"Five Simple Ways to Teach Kids about Money\" width=\"600\" height=\"383\" srcset=\"https:\/\/migonline.com\/blog\/wp-content\/uploads\/2018\/06\/Five-Simple-Ways-to-Teach-Kids-about-Money-02.jpg 600w, https:\/\/migonline.com\/blog\/wp-content\/uploads\/2018\/06\/Five-Simple-Ways-to-Teach-Kids-about-Money-02-300x192.jpg 300w\" sizes=\"auto, (max-width: 600px) 100vw, 600px\" \/><figcaption id=\"caption-attachment-2077\" class=\"wp-caption-text\">Image: Deposit Photos<\/figcaption><\/figure>\n<h3>Principal and Interest<\/h3>\n<p>To determine an estimated monthly principal and interest payment on your own, you will need a scientific or financial calculator to work out your loan amount\u2019s amortization over the\u00a0loan term (probably 10, 15 or 30 years). You will also need to know your mortgage loan\u00a0interest rate.<\/p>\n<h3>Tax Payment Estimate<\/h3>\n<p>You can obtain a record of tax payments on the property in question\u00a0from your county\u2019s property tax office. Depending on the county, some of these are available through a simple online search. Divide the total annual tax payment by 12 to find an estimate of your monthly tax payment.<\/p>\n<h3>Insurance Premiums<\/h3>\n<p>Shop around for homeowner\u2019s insurance policies before picking one. When doing so, you will be provided with a premium\u00a0estimate. Divide this number by 12 to determine your monthly insurance payment.<\/p>\n<p>Keep in mind that if your home is in a designated special flood hazard zone, you will also be required to take out a flood insurance policy. Your lender will provide you with official notification before\u00a0loan closing, if this is the case.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-3399\" src=\"https:\/\/staging.migonline.com\/blog\/wp-content\/uploads\/2018\/11\/loan-processing.jpg\" alt=\"6 Stops On Your Journey Through the Mortgage Loan Process \u00a0\" width=\"1000\" height=\"667\" srcset=\"https:\/\/migonline.com\/blog\/wp-content\/uploads\/2018\/11\/loan-processing.jpg 1000w, https:\/\/migonline.com\/blog\/wp-content\/uploads\/2018\/11\/loan-processing-300x200.jpg 300w, https:\/\/migonline.com\/blog\/wp-content\/uploads\/2018\/11\/loan-processing-768x512.jpg 768w\" sizes=\"auto, (max-width: 1000px) 100vw, 1000px\" \/><\/p>\n<h3>Simple, One-Step Calculation with a\u00a0PITI Payments Calculator<\/h3>\n<p>Rather than calculating the amortization on your own, search online\u00a0for a <a href=\"https:\/\/migonline.com\/calculate-a-mortgage-payment-2\">PITI payments calculator<\/a>. Reveal your monthly payment by\u00a0entering\u00a0these factors:<\/p>\n<ul>\n<li>Loan Amount (home purchase price minus down payment)<\/li>\n<li>Interest Rate<\/li>\n<li>Loan Term<\/li>\n<li>Tax Estimate<\/li>\n<li>Insurance Premiums<\/li>\n<\/ul>\n<p>An <a href=\"https:\/\/migonline.com\/compare-a-bi-weekly-mortgage-to-a-monthly-mortgage\">online calculator allows you to tweak various factors<\/a> in the equation to see how it affects\u00a0your monthly PITI payments.<\/p>\n<p>So, you can easily see how a 1\/2-point savings in interest affects your payment or how quickly you can pay off your mortgage if you pay\u00a0$50 more\u00a0per month.<\/p>\n<h3>Adjustable-Rate Mortgages, Premiums and Taxes Fluctuate<\/h3>\n<p>If you are approved for an <a href=\"https:\/\/migonline.com\/adjustable-rate-mortgage-analyzer\">adjustable-rate mortgage<\/a>, remember the interest rate on your loan will change based on a predetermined\u00a0schedule. An adjusted interest rate will affect your monthly payment amount, increasing or decreasing it.<\/p>\n<p>Taxes and insurance premiums also fluctuate annually, which will lead to an adjusted monthly escrow payment. Keep the potential for change in the back of your mind when deciding whether you can <a href=\"https:\/\/migonline.com\/home-affordability\">afford your proposed mortgage payment<\/a>.<\/p>\n<p>For more information about <a href=\"https:\/\/migonline.com\/piti\">calculating PITI payments<\/a> or to apply for pre-approval on a mortgage loan, <a href=\"https:\/\/migonline.com\/contact\">contact Mortgage Investors Group<\/a> today.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The four components of a monthly mortgage payment are principal, interest, taxes and insurance \u2013 also know as your\u00a0PITI payment. Each month you will repay your mortgage lender a portion of your loan\u2019s principal balance (the loan amount) and\u00a0accrued interest, plus payments that will be put into an escrow account from which your lender will &hellip; <a href=\"https:\/\/migonline.com\/blog\/2019\/03\/08\/learn-how-to-calculate-monthly-mortgage-piti-payments\/\" class=\"more-link\">Continue reading <span class=\"screen-reader-text\">Learn How to Calculate Monthly Mortgage PITI Payments<\/span> <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":3910,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[71,79],"tags":[],"class_list":["post-3757","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-first-time-homebuyers","category-loan"],"_links":{"self":[{"href":"https:\/\/migonline.com\/blog\/wp-json\/wp\/v2\/posts\/3757","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/migonline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/migonline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/migonline.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/migonline.com\/blog\/wp-json\/wp\/v2\/comments?post=3757"}],"version-history":[{"count":4,"href":"https:\/\/migonline.com\/blog\/wp-json\/wp\/v2\/posts\/3757\/revisions"}],"predecessor-version":[{"id":7766,"href":"https:\/\/migonline.com\/blog\/wp-json\/wp\/v2\/posts\/3757\/revisions\/7766"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/migonline.com\/blog\/wp-json\/wp\/v2\/media\/3910"}],"wp:attachment":[{"href":"https:\/\/migonline.com\/blog\/wp-json\/wp\/v2\/media?parent=3757"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/migonline.com\/blog\/wp-json\/wp\/v2\/categories?post=3757"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/migonline.com\/blog\/wp-json\/wp\/v2\/tags?post=3757"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}