Lonette and al want to purchase a home and avoid paying private mortgage insurance (pmi). what minimum amount of down payment is

Question

Vinvika [58]

3 years ago

5

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?

Social Studies

1 answer:

ziro4ka [17] · Answer 1 · 2021-11-27T12:14:15+03:00

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

<span>They should pay $7,350 to avoid paying PMI.</span>