Just Ask Jess About Mortgage Calculation

Dated: 12/06/2016

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Welcome to my blog series where I address commonly asked questions about real estate!!  This as an open discussion forum, if you have any questions regarding real estate please free to call, text or email me with any other questions you might have!

Q:  How do I calculate my mortgage? 

A:  The first thing you need to understand is PITI.  This is an acronym lenders use,  It stands for:  Principal. Interest.Tax. Insurance. 

As a lender is checking a borrower’s monthly income they will be comparing it to monthly mortgage payments for pre-approval. They use PITI for computing the individual's front-end and back-end ratios.  Generally, mortgage lenders prefer PITI to calculate out to be equal to or less than 28% of a borrower's gross monthly income.

Some loans wrap up the PITI into the actual amount that is calculated and paid monthly on the mortgage.  But not all mortgage payments are calculated this way.  Some are only interest and principal, with the tax and insurance on a separate payment plan.  Make sure you are made aware of your mortgage payment structure before you purchase your new home.  If you have any questions about mortgages and the pre-approval process call Jess at Front Door Realty.


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piti mortgage calculation

Licensed Realtor  #123830

Vancouver Washington Broker


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Megan Womack - Customer Concierge

Megan Womack came to Front Door Realty with over 10 years of customer service experience. She thrives on making sure our clients come first, is the ultimate people person, and makes friends everywhere....

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