If you made a down payment of $11,000 on a house worth $110,000, the lenders will require _____ because of the size of the down payment.
A)closing points
B)a bond
C)private mortgage insurance
D)application fees
E)homeowner's insurance

Question

Quizplus · Accepted Answer

Private mortgage insurance (PMI) is typically required by lenders when the down payment on a house is less than 20% of the purchase price. In this case, an $11,000 down payment on a $110,000 house is exactly 10%, necessitating PMI to protect the lender.

If You Made a Down Payment of $11,000 on a House