Your monthly payment is made up of four items: principal, interest, taxes and insurance (PITI). To calculate your monthly principle and interest payment, divide your loan amount by $1,000. Next, multiply by the appropriate interest rate factor.
To determine your total monthly payment, add 1/12th of the annual taxes and annual insurance premium to the monthly principal and interest.
Your lender will want to ensure that your home is insured in case of loss and that taxes are current, so there are no tax liens. For this reason, most lenders will require you to pay tax and insurance premiums as a part of your monthly mortgage payment. They, in turn, pay your tax and insurance bills directly.
| Interest Rate | Interest Rate Factor |
| 5.00% | 5.37 |
| 5.50% | 5.67 |
| 6.00% | 6.00 |
| 6.50% | 6.32 |
| 7.00% | 6.65 |
| 7.50% | 6.99 |
| 8.00% | 7.34 |
| 8.50% | 7.69 |
| 9.00% | 8.05 |
| 9.50% | 8.41 |
| 10.00% | 8.78 |
| 10.50% | 9.15 |
| 11.00% | 9.52 |
| 11.50% | 9.90 |
| 12.00% | 10.29 |
| 12.50% | 10.67 |
| 13.00% | 11.06 |
| 13.50% | 11.45 |
| 14.00% | 11.85 |
