What is the monthly PITI payment for a buyer offering $295,000 with a 30% down payment?

To determine the monthly PITI (Principal, Interest, Taxes, and Insurance) payment for a buyer offering $295,000 with a 30% down payment, first calculate the down payment amount and then the loan amount.

A 30% down payment on the purchase price of $295,000 is calculated as follows:

30% of $295,000 = 0.30 × 295,000 = $88,500.

The loan amount will therefore be:

$295,000 - $88,500 = $206,500.

Next, to find the monthly payment, we typically need the interest rate and the loan term (in this case, presumably 30 years, which is common). For simplicity, let’s assume the interest rate is 4%. The formula for calculating the monthly payment (principal and interest) using a fixed-rate mortgage is usually represented as:

M = P [ r(1 + r)^n ] / [ (1 + r)^n – 1 ]

where:

• M is the total monthly mortgage payment,

• P is the loan amount (in this case, $206,500),

• r is the monthly interest rate (annual rate divided by 12),

• n is the number of payments