Your monthly payment (PITI) is the sum of four items – the principal on the loan (P), the interest on the loan (I), property taxes (T), and homeowner’s insurance (I). To predict your monthly payment for a 30 year fixed rate loan, use the following table to determine the principal and interest part of the payment. Simply divide the loan amount by 1,000 and then multiply that figure by the appropriate interest rate factor from the table below. To that sum add 1/12th the amount of your yearly taxes and 1/12th the amount of your yearly insurance premium. This will give you your PITI payment.

For example: If your mortgage loan amount is $150,000, your interest rate is 7.0% you would multiply 150 by 6.65 resulting in a value of $997.50. Add your monthly insurance premium (approximately $25 – $75 per month) and your property tax (approximately your purchase price x 1.25% /12) to your principal and interest. This is your estimated monthly payment.