Printable cheat sheet

Texas real estate mortgage payment and PITI cheat sheet

Built for Texas sales agent exam prep. Use this to convert the rate and term to monthly, apply the per-$1,000 payment factor, and build full PITI before you touch the qualifying ratios.

Reviewed August 30, 2026 · CFPB payment definitions · Pearson VUE outline #094401

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Principal & interestMonthly rate, months

Convert the annual rate to monthly (divide by 12) and the term to months (years x 12), then amortize the loan.

Payment factor(Loan / 1,000) x factor

The exam usually gives a factor per $1,000. Multiply it by the loan in thousands to get monthly principal and interest.

PITIP&I + taxes + homeowners insurance

PITI itself excludes mortgage insurance and HOA. Add those separately when the question asks for the full monthly housing expense.

Front-end ratioHousing expense / gross monthly income

Use the full housing expense named in the question, which can include mortgage insurance, HOA dues, and other required housing costs.

Back-end ratio(PITI + debts) / income

Add monthly debt payments such as cars, cards, and student loans.

Total interest(Payment x months) - loan

Multiply the monthly payment by the number of payments, then subtract the original loan amount.

The exam setup rule

  1. Read whether the question gives a rate and term or a payment factor.
  2. Convert the annual rate to monthly and the term to months if you have a rate.
  3. Find monthly principal and interest first.
  4. Add 1/12 of annual taxes and homeowners insurance for true PITI. Add mortgage insurance, HOA, and other required costs only for the broader housing total.
  5. Answer the exact amount asked: principal and interest, PITI, or total interest.

Five worked examples

Rate and term$320,000 loan, 6.75% annual, 30 years

Monthly rate 0.5625%, 360 payments. Monthly principal and interest is about $2,075.51.

Payment factor$240,000 loan, factor 6.49 per $1,000

240,000 / 1,000 = 240. 240 x 6.49 = $1,557.60 monthly principal and interest.

Payment layers$2,075.51 P&I, $9,000 tax, $1,800 insurance, $150 PMI

Tax is $750 monthly and homeowners insurance is $150. True PITI is $2,975.51. Add $150 mortgage insurance for a $3,125.51 estimated monthly payment.

Total interest$2,075.51 payment, 360 payments, $320,000 loan

2,075.51 x 360 = $747,185. Minus 320,000 = about $427,185 total interest.

Front-end ratio$3,125.51 full housing expense, $9,200 gross monthly income

$3,125.51 / $9,200 = 33.97% front-end ratio.

Traps to check

  1. Do not use the annual rate as the monthly rate; divide by 12 first.
  2. Do not multiply a per-$1,000 factor by the whole loan; divide the loan by 1,000 first.
  3. Do not answer principal and interest when the question asks for full PITI.
  4. Do not forget to divide annual taxes and insurance by 12.
  5. Do not add a transfer tax to a Texas payment; Texas has no statewide transfer tax.

Work it without the answer showing

Keep the payment layers separate and preserve full precision until the final displayed answer.

Problem 1 · payment layers$280,000 loan, 6.5% fixed annual rate, 30 years, $7,200 annual taxes, $1,800 annual homeowners insurance, $120 monthly mortgage insurance, and $80 HOA. Find P&I, true PITI, estimated payment with mortgage insurance, and total housing expense.
P&I
PITI
Other layers
Final answer
Problem 2 · payment factor$180,000 loan and a payment factor of 6.32 per $1,000. Find monthly principal and interest.
P&I
PITI
Other layers
Final answer
Problem 3 · total interest$150,000 loan, 4% fixed annual rate, 30 years. Monthly P&I is $716.122943 before display rounding. Find total interest using full precision.
P&I
PITI
Other layers
Final answer

Answer key

  1. Monthly P&I is $1,769.79. Taxes are $600 monthly and homeowners insurance is $150, so true PITI is $2,519.79. Add $120 mortgage insurance for $2,639.79. Add $80 HOA for $2,719.79 total housing expense.
  2. $180,000 / $1,000 = 180. Then 180 x 6.32 = $1,137.60 monthly principal and interest.
  3. $716.122943 x 360 - $150,000 = $107,804.26 total interest after final display rounding. Do not multiply a rounded $716.12 payment when full precision is available.

Sanity check

  1. A higher interest rate or a longer term raises total interest.
  2. PITI is principal, interest, property taxes, and homeowners insurance. Mortgage insurance and HOA are separate layers.
  3. Total interest equals total payments minus the original loan amount.
Practice the patternPass Texas drills mortgage math, qualifying ratios, and mixed closing problems.

Use the calculator, Math Coach, Trap Library, and Texas-specific questions at passtexasrealestate.com.

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Sources: Pearson VUE outline #094401, CFPB PITI definition, and CFPB private mortgage insurance guidance. For exam prep only, not lending, affordability, insurance, tax, or financial advice. Reviewed August 30, 2026.

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