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castortr0y [4]
3 years ago
14

What percentage of the loan does PMI insure to protect the lender in case the borrower defaults on the loan?

Business
1 answer:
KIM [24]3 years ago
6 0

20 percent of the loan does PMI insure to protect the lender in case the borrower defaults on the loan.

Explanation:

PMI insurance essentially protects lendingers in the case of homeowners defaulting on their loans, as the homeowner has a shareholding of less than 20 percent.

PMI does not always protect the buyer, but it does provide you with a way of becoming a domestic owner unless you have a minimum payment of 20 percent.

This is a kind of conventional mortgage insurance insurers ask homebuyers to reduce their purchase price by less than 20%. You will need an insurance premium for your mortgage — the amount you earn PMI — though how you do this will vary with the creditor.

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Answer:

Closing retained earning is $414,540

Explanation:

The Retained Earnings figure can be calculated using the following equation:

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