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.
For example, a quick look at an interest rate factor chart shows that for an interest rate of 5%, the factor is 7.91 for a 15 year term and 5.37 for a full 30 year term. So if the loan amount is $200,000, then the amount payable for every $1000 of the loan would be 7.91 x 200 for a 15 yr term and 5.37 x 200 for a 30 yr term.
It’s quite possible that many readers don’t want to have anything to do with this kind of math. Use a mortgage calculator with PITI, and there is no need to do this kind of math or pore over factor charts. All that the home-owner has to do is have the home loan calculator with taxes and insurance for the property in question ready, and input the amount, interest rate and term. This will produce a full and complete amortization schedule.
Note that these calculators can be used on both conventional fixed rate loans and FHA loans. FHA loans are better for homebuyers whose credit isn’t as good as it should have been. So in a comparison of FHA vs Conventional, FHA loans are easier to get since the FHA insures it and the risk for lenders is lower.
Want to find the best online piti calculator, then visit HomeFellas and see for yourself what a great mortgage calculator piti can do!