Question

Janae is purchasing a home for $234,570. If she uses a conventional loan, what is the best estimate for how much will her down payment be? A. $18,765 B. $23,457 C. $35,185 D. $46,914

Answer 1

Answer:

The correct answer is D. $  46,914

Step-by-step explanation:

According to the Consumer Financial Protection Bureau, conventional mortgages have a down payment requirement as low as 3 percent, however most typically require a down payment of 5 to 20 percent. Therefore, the best estimate for Jane's down payment is the 20 percent.

Using the values given, we have:

234,570 * 0.2 = 46,914

The correct answer is D. $  46,914