Quote:
Originally Posted by eastcoastlover
Hopefully I am not repeating a previous question, I've tried to find an answer before posting this.
when looking at the mortgage calculators on real estate websites, I see the estimated monthly payment based on down payment and terms.
Does that estimated payment include principal, interest, tax and insurance(PITI)?
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Breaking down a loan to understand it.... FYI - you may not know
A loan is made of four parts
Term
Balance
Interest Rate
Payment
When ever you change one you effect the other three. For example - one extra payment a year, knocks 7+ years of the term, your balance goes down, and the net effective interest rate is reduced by 2% (Plus you get reported as more resposible and your credit score goes up...
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The answer to your question to calculate the P/I payment
On a mortgage calculator (or on wep site calulator) enter the term, the balance and the rate, to equal the payment.
On interest only loans it is easier - multiple the interest rate by the balance and divide by 12 to get the monthly payment.
Taxes and insurance are different for everybody, it is the responsibility of the homeowner to know how much his mortgage taxes and their homeowners insurance are. Totaling that figure, dividing by 12 and adding the the P/I to get the monthly PITY payment.
Be advised if a person has less than 20% equity, or the first five years of an FHA loan. Added to the PITY payment is mortgage insurance called MI or PMI. Calculating that is different from lender to lender.
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