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.

The tool generates an amortization schedule broken up into principal amounts and interest payments. All that home-owners need to do is fill in the required fields that include the estimated monthly or annual property tax and home owners insurance. Other fields that need to be entered include the loan amount, interest rate and term or repayment period in years.

Once this data has been typed in, the tool is able to provide a monthly or annual schedule for amortization. Done manually, the same thing can be very complicated with a number of steps and use of a „Factor.“ Factors are representative of the amount that needs to be paid back for every $1000 of the loan amount, taking into consideration the interest rate and term.

Consider, as an example, an interest rate of 5%. Cross-checking the rate against an interest rate factor chart shows that for a 30 yr term, the factor is 5.37 and for a 15 yr term it is 7.91. Now if the loan amount is $200,000, the 200 x 7.91 would be the amount payable for every $1000 for the 15 year proposal, and it would be 200 x 5.37 for the 30 year proposal.

However, when there’s a mortgage calculator with PITI available, there’s no need to worry about pesky things like factor charts. All that needs be done is enter the amount, term and interest rate into the home loan calculator with taxes and insurance. It will spit out the complete results, month by month.

It’s not just for traditional fixed rate loans, since these calculators can also be used on an FHA loan. An FHA loan is actually a lot more beneficial and easier to get for home buyers whose credit is a bit shaky. In a comparison of FHA vs Conventional loans, the lender assumes much less risk in an FHA loan since these loans are insured by the FHA.

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.