Computing Total Payment (Piti) - Texas Instruments BA Real Estate User Manual

Computing Total Payment (PITI)

Background
Solution
30 Mortgages and Amortization
A couple is interested in a small lake-front property, for
which the owner is asking $85,000. The buyers need to
know the approximate amount of their total payment on
the property.
You know that the property taxes and insurance rates for
the lake area average 2.38% and 0.78% respectively. The
couple has $20,000 to use as a down payment. With a
30-year note at 9%, what will their mortgage payment
(PMT) and total monthly payment (PITI) be?
Press
Steps
Clear TVM values.
Set P/Y and C/Y to 12.
Enter local tax rate.
Enter insurance rate.
Enter price of
property.
Enter term in years.
Enter interest rate.
Enter price less down
payment.
Compute mortgage
payment (principal
and interest).
Compute total
monthly payment
(PITI).
Note: If you do not enter a value for sales price, the tax
and insurance percentages will compute PITI based on the
loan amount. The result will be a smaller PITI payment
than expected.
until the BGN indicator disappears.
Keystrokes
12
2.38
.78
85
30
9
85 20
Display
0.00
P/Y = 12.00
C/Y = 12.00
12.00
TX%= 2.38
IS% = 0.78
PRC= 85,000.00
TRM= 30.00
I% = 9.00
LN = 65,000.00
-523.00
PMT=
-746.83
PITI=