Real Estate Math

A buyer's monthly principal and interest payment is $1,850. Annual property taxes are $3,600 and homeowners insurance is $1,200 annually. What is the total monthly PITI payment?

A$1,850
B$2,250✓ Correct
C$2,450
D$2,550

Explanation

Monthly taxes = $3,600 ÷ 12 = $300. Monthly insurance = $1,200 ÷ 12 = $100. PITI = $1,850 + $300 + $100 = $2,250.

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