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dmitriy555 [2]
2 years ago
12

PLEASE HELP !!!

Mathematics
1 answer:
GrogVix [38]2 years ago
7 0
<h3>Answer: D. 80% of the home’s value</h3>

============================================================

Explanation:

As you probably expect, the first number 80 refers to the percentage the first loan covers. If the house is say $100,000, then the first loan is $80,000 while the second loan is the remaining $20,000.

An 80/20 mortgage, or similar, will have two monthly payments because you are getting two mortgages bundled together. Usually you should pay a down payment, though it may likely depend on your credit history. Those with good credit will pay less or no down payment, compared to those with worse credit will have to pay more down payment. A good rule of thumb is that 20% of the home's value is made as down payment, though this isn't what the "20" in "80/20" is referring to.

An 80% down payment is extremely high and unreasonable. Not many people have that kind of money laying around. A similar story applies to a 20% interest rate which is incredibly large for a mortgage rate (typically they are in the single digits such as 3%).

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