By Brandon Sooknanan, Founder of StatementReady
PITI is principal, interest, taxes and insurance: the monthly principal and interest on the loan plus one twelfth of the annual property tax and homeowners insurance. HOA dues and mortgage insurance can be added when they apply. The PITI calculator shows each part and the total for review of the loan file.
The formula
Total PITI = monthly principal and interest + monthly property tax + monthly homeowners insurance + monthly HOA dues + monthly mortgage insurance, counting only the parts you enter. Principal and interest is standard amortization at the rate and term you enter. Annual tax and insurance amounts are divided by 12. Rounded to the cent. There is no default rate, tax or insurance figure.
Worked example (page numbers only)
- $320,000 at a 6.5% rate entered over 30 years: $2,022.62 principal and interest
- Property tax $4,800 a year: $400.00 a month
- Homeowners insurance $1,500 a year: $125.00 a month
- HOA dues $50.00 a month, no mortgage insurance
- Total PITI: $2,022.62 + $400.00 + $125.00 + $50.00 = $2,597.62 a month
Round numbers for illustration only; the rate, term, tax and insurance are inputs, not defaults.
What it doesn't do
- Estimate only; doesn't look up tax rates, insurance premiums or mortgage insurance
- Doesn't model escrow shortages, rate changes or flood and other separate policies unless you add them to the insurance figure
- Doesn't make a lending decision
- Runs in the browser; what you type isn't sent or stored
Related free tools
Carry the total housing payment into the mortgage DTI calculator. Check loan amount against value with the LTV and CLTV calculator. For interest-only starts, see the interest-only mortgage calculator. For a line of credit, the HELOC payment calculator. All free tools.
When you're ready to work from the real statements, StatementReady checks whether each statement's transactions add up to its printed balances. It assists review of loan files; the lender makes all underwriting decisions.
Not legal or tax advice. StatementReady isn't affiliated with or endorsed by Fannie Mae or any lender named here.
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