PITI Mortgage Calculator for homebuyers is an invaluable tool that is a must in a homebuyer’s toolkit. It stands for principal, interest, tax (property) & insurance (homeowners). It can be used for calculating payments for both convention and Federal Housing Administration loans.

Homebuyers using the tool need to feed in the term, interest rate & loan amount. It also requires annual/monthly figures regarding the property’s homebuyer insurance payment and the property tax involved. With these figures as the input, the tool can provide detailed annual/monthly amortization schedules.

Without this tool, getting the schedule would be a difficult matter where math Factors are involved. These factors are the loan payments required for every $1000 of the proposal value. It will depend on the interest rate & the term of the proposal.

As an illustrative example, consider what happens when there isn’t a mortgage calculator with PITI available. Assume that a homebuyer is looking at a $250,000 loan with a 5% interest rate for either a 15 or 30 year period. The homebuyer have to consult factor charts to find out that the factor here for 15 and 30 yr loans are 7.91 and 5.37 respectively.

It means that the homebuyer needs to pay 250 times 7.91 ($1977.50) per $1000 in loan amount for a 15 year term, and 250 times 5.37 ($1342.50) for a 30 year term. All this is no doubt complicated. This is why using a home loan calculator with taxes and insurance fed into it along with the basic details of the proposal is a lot easier.

One other thing to note is that this tool works for FHA loans too, so homebuyers are advised to do a comparison of FHA vs conventional proposals. The point here is that FHA provides insurance so the lender carries less risk and offers better terms. Homebuyers without good enough credit can qualify for proposals that they couldn’t normally get without the FHA’s backing.

Looking to find the best online mortgage payment calculator, then visit HomeFellas and you will learn about even what a home loan calculator with taxes and insurance is!