Math lesson 244 · Calculations

Mortgage Payment and PITI Questions

PITI is the monthly principal-and-interest payment plus monthly property taxes and homeowners insurance. Use the payment or payment factor supplied by the question unless it expressly requires another method. Add mortgage insurance, association dues, or other housing costs only when the question tells you to include them.

Facts checked against the current PSI Candidate Information Bulletin and GREC sources. Last reviewed August 2, 2026. Editorial standards.

What is the exam-ready answer?

Official syllabus mapping for Mortgage Payment and PITI Questions
Roadmap post	244 of 500
Official syllabus topic	XI.A.5 PITI payments estimate given loan rate and term
Official PSI area	Real Estate Calculations
Published weight	7% of the 100-question national portion
Source edition	PSI Georgia Candidate Information Bulletin dated July 1, 2026
Content checked through	August 2, 2026

The Rule

PSI publishes a weight for the complete official area, not a guaranteed count for this individual calculation. Follow the stated facts, units, time basis, and rounding instruction.

Formula and variables

PITI: PITI = monthly principal and interest + annual property tax / 12 + annual homeowners insurance / 12

Variables used in PITI
Symbol or term	Meaning
P and I	Monthly principal-and-interest payment from the stated terms, factor, or supplied payment
T	Monthly property-tax amount
I	Monthly homeowners-insurance amount

Step-by-step method

Find the monthly principal-and-interest payment using the information or factor the question supplies.
Convert annual property tax to monthly by dividing by 12.
Convert annual homeowners insurance to monthly by dividing by 12.
Add the requested components and any additional housing cost expressly stated.
Do not confuse the principal balance with the principal portion of one monthly payment.

Georgia-specific distinction

Georgia property taxes often require the separate 40% assessed-value and millage calculation before the annual tax can be divided by 12. PITI itself remains a national mortgage concept. Actual escrow and payment terms are controlled by the loan documents.

Worked examples

Example 1: Add annual taxes and insurance

Scenario. Monthly principal and interest is $1,540. Annual property tax is $4,800 and annual homeowners insurance is $1,800.

Monthly tax = $4,800 / 12 = $400.
Monthly insurance = $1,800 / 12 = $150.
PITI = $1,540 + $400 + $150 = $2,090.

Answer. Monthly PITI is $2,090.

Reasonableness check. Taxes and insurance add $550 to the principal-and-interest payment.

Example 2: Use a supplied payment factor

Scenario. A question gives a principal-and-interest factor of $6.00 per $1,000 borrowed on a $240,000 loan. Annual tax is $3,600 and annual insurance is $1,200.

$240,000 / $1,000 = 240 loan units.
Principal and interest = 240 x $6.00 = $1,440.
Monthly tax = $300 and monthly insurance = $100.
PITI = $1,440 + $300 + $100 = $1,840.

Answer. Monthly PITI is $1,840.

Reasonableness check. The supplied factor controls. No independent interest-rate estimate is needed.

Common exam traps

Adding annual taxes and insurance to a monthly mortgage payment
Omitting taxes or insurance
Using the sale price rather than loan amount with a payment factor
Assuming association dues or mortgage insurance are inside PITI when the question treats them separately

Original practice questions with detailed explanations

These original instructional questions map to the July 1, 2026 PSI outline. They are not copied from PSI or any live examination. Write the setup before opening the explanation.

Question 1

Principal and interest is $1,300 monthly, annual taxes are $3,600, and annual insurance is $1,200. What is PITI?

A. $1,400
B. $1,600
C. $1,700
D. $6,100

Show answer and explanation →

Answer: C. $1,700

Monthly taxes are $300 and insurance is $100. $1,300 + $300 + $100 = $1,700.

Question 2

A payment factor is $7.25 per $1,000 on a $200,000 loan. What is monthly principal and interest?

A. $725
B. $1,450
C. $1,525
D. $14,500

Show answer and explanation →

Answer: B. $1,450

$200,000 contains 200 units of $1,000. 200 x $7.25 = $1,450.

Question 3

Which component is represented by the T in PITI?

A. Term
B. Title insurance
C. Property taxes
D. Transfer tax

Show answer and explanation →

Answer: C. Property taxes

PITI means principal, interest, taxes, and insurance.

Mastery tracking

Mark this calculation mastered only when every statement is true.

I keep monthly and annual amounts on the same period.
I use a supplied loan-payment factor correctly.
I can name all four PITI components.
I add extra housing costs only when the question directs me to.
I can connect a Georgia annual property-tax result to monthly PITI.

Recommended next lesson

Continue with Discount Points and Origination Fees. Calculate upfront loan costs from the correct percentage base.

Return to the complete calculation hub, formula sheet, or mixed math drill.

Mortgage Payment and PITI Questions questions

Facts checked against the current PSI Candidate Information Bulletin and GREC sources. Last reviewed August 2, 2026. Editorial standards.

Is Mortgage Payment and PITI Questions on the Georgia real estate exam?

It maps to XI.A.5 PITI payments estimate given loan rate and term in the official Real Estate Calculations area. PSI assigns 7% of the 100-question national portion to the complete area but does not guarantee a count for this individual formula.

What formula should I use for Mortgage Payment and PITI Questions?

PITI = monthly principal and interest + annual property tax / 12 + annual homeowners insurance / 12

What Georgia-specific point should I remember?

Can I use a calculator on the Georgia real estate exam?

PSI provides an online calculator during the examination. Handheld calculators are prohibited. Write the setup and label the units before entering numbers.