Social Studies
Afonso244
2016-04-29 23:31:12
Lonette and al want to purchase a home and avoid paying private mortgage insurance (pmi). what minimum amount of down payment is required for them to purchase a $36,750 home to avoid pmi?
ANSWERS
glbrent1
2016-04-30 00:11:07

Private Mortgage Insurance (PMI) is an added insurance policy that protects the lender if you are unable to pay your mortgage. As a borrower, Lonette and Al should put down at least 20% so that they can avoid paying PMI. Therefore, Minimum down payment = 0.20 * $36,750 Minimum down payment = $7,350 They should pay $7,350 to avoid paying PMI.

ADD ANSWER