Question

You have found a home that you are interested in purchasing. Instead of a conventional loan, you agree to pay the premium for the private mortgage insurance (PMI), which finances 95% of the loan. The amount of the home is listed at $95,278. From the given information, determine the amount needed for the down payment to qualify for the PMI loan.

Answer 1

Hi there
Down payment is 5% of the amount listed
100-95=5%
So the amount of down payment is
95,278×0.05=4,763.9

Hope it helps