Tania is interested in buying a $135,000 home. How big does her down payment need to be in order to avoid PMI?

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Marie Mayo

21 December, 20:11

Tania is interested in buying a $135,000 home. How big does her down payment need to be in order to avoid PMI?

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Answers (2)

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Hugo Maynard · Answer 1

Answer: $27,000 APEX

Ross Chase · Answer 2

To avoid Primary Mortgage Insurance (PMI), you need to have the loan balance be 80% or less of the home value. Therefore, Tania needs to give a down payment of at least 20% of $135000

= 20/100 * 135000 = $27000

So Tania needs to pay $27000 down payment or more in order to avoid PMI (Primary Mortgage Insurance).