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Norma Said:

Can someone please show me the math for how they work out a monthly mortgage payment?

We Answered:

On a 100,000 loan P&I payments @ 6% would be: 599.55 or $6/thousand to estimate other loan amounts (good luck finding 6% without some good points).

Then you have to add in real estate taxes. On 100K, mine are $2,000/yr, but this varies widely from one area to another. Divide by 12 to get monthly or about $167.00.

Then you have home owners insurance. Mine runs $730/yr or $61/month.

Then you may have PMI if you borrower more than 80% of the value of the property. It could be .37% at 85%, .52% at 90%, .78% at 95% or .96% at 97%. FHA is about .55 at 97.75% on a purchase. These are annual factors. FHA premium on 100K would be about $46 monthly.

Add it all up:

Total PITI = $874 roughly.

I hope this helps.