How to Calculate Monthly Mortgage Interest, Insurance & Taxes

When you finally get approved for your mortgage, your payments will include interest and principal (a portion of the amount you borrowed). In some cases it may also include insurance and taxes—the entire payment when combined is called PITI (principal, interest, taxes and insurance). You can do the calculation using an online tool to determine the total each month.

Step 1

Use the Real Estate ABC PITI calculator to determine your total payment including interest, taxes and insurance (see Resources). Enter your basic loan details (number of years, rate and loan amount) as well as the estimated yearly tax and insurance premium to determine the payment. The calculator breaks down the payments so that you can see the portion dedicated to monthly taxes and insurance in addition to the total PITI payment.

Step 2

Calculate your total payment using the PITI tool at the Mortgage Info website (see Resources). Fill out all three sections to determine payments including interest, insurance and taxes. One section asks for information about the property you wish to buy, the next asks for down payment and the last one allows you to choose up to three different types of mortgage programs to determine the estimated cost per month.

Step 3

Determine the payment including interest, taxes and insurance costs using the Century 21 calculator (see Resources). Type in all loan details, including annual property tax and hazard insurance (estimates) to review the total PITI. If you're moving into a condominium you can also integrate homeowners association dues into your total payment with this tool.

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