Art obtains a mortgage loan from Bayside Bank so that he can purchase a house. The house costs $200,000. Art makes a down payment of $20,000. Based on the amount of the price paid up front, Bayside will likely require Art to

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Art's down payment is 10% of the house price, which is below the typical 20% threshold, so Bayside Bank will likely require him to purchase mortgage insurance to protect the lender against default.

Art Obtains a Mortgage Loan from Bayside Bank So That