Benefits Of Using A PITI Mortgage Calculator

Among all the calculators and tools on offer for homebuyers, the PITI mortgage calculator is likely the most useful one. Without it, homebuyers would be hard pressed to work out the total payment on a proposal inclusive of the principal, interest, tax and insurance. This tool can be used for both conventional fixed rates loans as well as FHA loans.

What it offers in the form of results is a full schedule for amortization, with principal and interest listed separately. The homeowner has to input the basic data regarding the proposal and property, including the monthly/annual property taxes and home owners insurance. Also required are the term period of the loan, interest rate and the amount.

With this data filled in, when the user hits submit, the tool calculates and prints out a complete amortization schedule that can be monthly or annual. To get this kind of information manually, extensive and multi-step calculations involving ‘factors’ would have to done. A Factor is the amount to be paid in for every $1000 in the total loan amount, and is calculated based on interest rates and terms.

Here’s a simple example using a 5% interest rate. The home-owner would need to consult a chart for interest rate factors, and it would show that the factor here for a 30-yr term is 5.37 and for a 15-yr term it would be 7.91. Assuming that the loan amount is $200,000, the amount payable for each $1000 in this loan would be 200 x 7.91 for a 15-yr term and it would be 200 x 5.37 for a 30-yr term.

No doubt some readers will be getting a slight headache by now. This headache and all the hassle and factor charts can be avoided simply by using a mortgage calculator with PITI. Just enter the interest rate, term and amount into a home loan calculator with taxes and insurance. That’s all it takes to get the full month by month results.

This tool works just fine even for FHA loans. That’s a big plus, because FHA loans are actually somewhat more beneficial for people with credit that’s not good enough for the kind of home they want. The FHA insures the proposal, so a comparison of FHA vs Conventional loans for the same property and loan amount would result in a lender offering better terms for the FHA proposal, since the risk is lower.

Looking to find the best online mortgage piti calculator, then visit HomeFellas and you will learn about even what a mortgage calculator with piti is.