Total Payment Including Taxes And Insurance (Piti) - Texas Instruments BA Real Estate User Manual

Total Payment Including Taxes and Insurance (PITI)

Values Used to
Calculate PITI
Procedure
Using Selling
Price
Procedure
Using Tax and
Insurance
Amounts
You can compute the total monthly payment including
principal, interest, local property taxes, and insurance
(PITI).
The PITI calculation uses the selling price, the TVM values,
and the values you have entered for the tax rate
( ) and the insurance rate (
actual annual tax and insurance amounts (
If you omit the selling price when calculating PITI with tax
and insurance percentages, PITI will be calculated on the
loan amount, which may underestimate PITI.
1. Press
2. If you have not set the tax and insurance rates for your
area, follow the instructions on page 18 before
proceeding.
3. Enter the sales price (
4. Use the TVM keys to enter TERM, I%, and LOAN.
Note: If the borrower's mortgage requires private
mortgage insurance, that rate (for example, 1/4% to
3/8%) should be added to the annual interest rate.
5. Press
1. Press
2. Add the actual annual tax and insurance amounts, and
enter the total with
settings for tax rates.
3. Use the TVM keys to enter TERM, I%, and LOAN.
Note: If the borrower's mortgage requires private
mortgage insurance, that rate (for example, 1/4% to
3/8%) should be added to the annual interest rate.
4. Press
to clear the TVM values.
) of the property.
to display the result (PITI).
to clear the TVM values.
to display the result (PITI).
Mortgages and Amortization 29
), or the
to override the
).