1. What is a PITI Mortgage Calculator?

Definition: This calculator estimates the total monthly mortgage payment including Principal, Interest, Taxes, and Insurance (PITI).

Purpose: It helps homebuyers understand their complete monthly housing costs when evaluating mortgage options.

2. How Does the PITI Calculator Work?

The calculator uses the formula:

Where:

• \( M \) — Total monthly payment (USD)
• \( PI \) — Principal and interest payment (USD)
• \( tax \) — Annual property tax (USD)
• \( insurance \) — Annual homeowner's insurance (USD)

Explanation: The PITI payment combines your loan payment with prorated property taxes and insurance costs.

3. Importance of PITI Calculation

Details: Understanding PITI helps borrowers budget accurately and ensures they don't underestimate total housing costs.

4. Using the Calculator

Tips: Enter your principal/interest payment, annual property tax, and annual insurance costs. All values must be ≥ 0.

5. Frequently Asked Questions (FAQ)

Q1: What's included in PITI?
A: PITI includes Principal, Interest, Taxes, and Insurance - the four main components of most mortgage payments.

Q2: How do I find my PI amount?
A: Use our Mortgage Principal & Interest Calculator or get this amount from your lender.

Q3: Are property taxes and insurance always included?
A: Typically yes, as lenders often require escrow accounts for these expenses, but some loans may handle them separately.

Q4: What about PMI or HOA fees?
A: Private Mortgage Insurance (PMI) and HOA fees are additional costs not included in this basic PITI calculation.

Q5: Why divide taxes and insurance by 12?
A: This converts annual costs into monthly amounts that are typically included in your mortgage payment.