you have found a home that you are interested in purchasing instead of a conversational loan you agree to pay the premium for the private mortgages insurance, which finances 95% of the loan. The amount of the home is listed at 95,278. From the given info determine the amount needed for the down payment to qualify for the pmi loan

Question

Mathematics

Brisa Holder

27 January, 22:19

you have found a home that you are interested in purchasing instead of a conversational loan you agree to pay the premium for the private mortgages insurance, which finances 95% of the loan. The amount of the home is listed at 95,278. From the given info determine the amount needed for the down payment to qualify for the pmi loan

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Landyn Bush · Answer 1

The amount of down payment needed to qualify for the loan is $ 4,763.90

Step-by-step explanation:

The question stated that the private mortgage insurance finances 95% of the loan which is the same as the 95% of the value of the home the borrower have in mind.

Availability of 95% mortgage financing implies that the borrower needs to make a down payment of the remaining 5%.

As a result, the borrower would make a down payment of $4,763.90 ($95,278*5%)