Question

Bella is interested in buying a $150,000 home. How big does her down

Answer 1

Answer:

The answer is option B : $30,000.

Step-by-step explanation:

To avoid Primary Mortgage Insurance or PMI, one need to have the loan balance to be 80% or less of the home value.

Hence, Bella needs to deposit a down payment of at least 20% of $150,000

This value becomes:

$0.20\times150000=30000$ dollars

Therefore, the answer is option B : $30,000.