A Florida property is being purchased for $395,000 with an 80% loan-to-value ratio. The annual property taxes are $4,740, homeowner's insurance is $1,680 annually, and PMI is $185 monthly. What is the total monthly PITI payment if the principal and interest payment is $1,847?
Correct Answer
A) $2,567
Monthly taxes are $4,740 ÷ 12 = $395. Monthly insurance is $1,680 ÷ 12 = $140. Using the monthly PMI amount stated in the question, total monthly payment is $1,847 + $395 + $140 + $185 = $2,567. Option A is correct.
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Key Terms:
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