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Aleks04 [339]
3 years ago
13

Nico is buying a home for $625,000. His earnest money deposit is 8%. He wants to avoid private mortgage insurance (PMI) on his c

onventional loan, and he owes 5% in closing costs. How much money should he bring to closing?
Business
1 answer:
qaws [65]3 years ago
4 0

Answer: $106,250

Explanation: Conventional loans often require 20% down to avoid PMI ($125,000), and Nico has paid a $50,000 deposit ($625,000 x .08). Closing costs are $31,250 ($625,000 x .05).

He needs $106,250 to close ([$125,000 - $50,000] + $31,250).

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