Question

James has a mortgage of $98,500 at 8% for 15 years. The property taxes are $3,900 per year, and the hazard insurance premium is $764.50 per year. Find the monthly PITI payment (in $). (Round to the nearest cent.)

Answer 1

For the computation of monthly PITI payment first, we need to find out the PMT and Monthly property taxes and hazard insurance premium which is shown below:-

Now,

Monthly property taxes and hazard insurance premium = (Property taxes + Hazard insurance per year) / Total number of months per year

= ($3,900 + $764.50) / 12

= $388.71

and finally,

Total monthly payments = $941.32 + $388.71

= $1330.03