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.

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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 + T/12 + I/12 + PMI + HOA

Add 1/12 of annual taxes and 1/12 of annual insurance to principal and interest, plus any PMI and HOA.

Front-end ratioPITI / gross monthly income

Qualifying uses the full housing payment, not just principal and interest.

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 insurance, plus PMI and HOA, for PITI.
  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.

Full PITI$2,075.51 P&I, $9,000 tax, $1,800 insurance, $150 PMI

Tax 9,000 / 12 = 750. Insurance 1,800 / 12 = 150. PITI = 2,075.51 + 750 + 150 + 150 = $3,125.51.

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 PITI, $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.

Sanity check

  1. A higher interest rate or a longer term raises total interest.
  2. PITI is always larger than principal and interest alone.
  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 Texas Real Estate content outline (Financing and Settlement), TREC Candidate Handbook, and CFPB consumer guidance on PITI, escrow, and PMI. For exam prep only, not lending or financial advice.

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