A couple finances a house valued at $150,000. The monthly principal and interest payment has been determined to be $641.85. Taxes on the property are estimated to be $578 per year. Insurance on the property is projected to cost $720 per year.
The monthly PITI payment is: $ 1
To calculate the monthly PITI payment (Principal, Interest, Taxes, and Insurance), you need to add up the monthly costs for each component.
First, let's calculate the monthly cost for property taxes:
Property taxes are estimated to be $578 per year. To find the monthly cost, divide this amount by 12 (months).
Monthly property tax = $578 / 12 = $48.17
Next, let's calculate the monthly cost for property insurance:
Property insurance is projected to cost $720 per year. To find the monthly cost, divide this amount by 12 (months).
Monthly property insurance = $720 / 12 = $60
Now, let's add up the monthly principal and interest payment, property tax, and property insurance to find the monthly PITI payment:
PITI = Monthly principal and interest payment + Monthly property tax + Monthly property insurance
PITI = $641.85 + $48.17 + $60
PITI = $750.02
Therefore, the monthly PITI payment is $750.02.