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05-13-2012, 02:20 PM #1
Renter
- Join Date
- Apr 2012
- Posts
- 10
Amortizing a Loan: Basic Question
This is a very basic question, but in the PITI payments, amortization of the loan only applies to the Principle and Interest or the PITI portion correct?
So for instance if you purchase a house using the below numbers
Loan: $120,000
Term: 15 years
Interest Rate: 4%
your monthly payment would be $887.63. But that only accounts for the principle and interest portion of PITI. You would have to pay additional money in Taxes and Insurance that are not wrapped up in the payment correct?
Thanks
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05-14-2012, 10:23 AM #2
Condominium
- Join Date
- Sep 2011
- Location
- Houston, Texas
- Posts
- 109
You only amortize the loan, not the taxes and insurance. There are numerous free calculators online that will provide you with an amortization schedule for a given amount, rate, and term.
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