If you made a down payment of $11,000 on a $110,000 house,the lender no doubt will require ____ as a result of the size of the down payment.
A)closing points
B)a bond
C)private mortgage insurance (PMI)
D)application fees
E)homeowner's insurance

Question

Quizplus · Accepted Answer

When a down payment is less than 20% of the home's purchase price, lenders usually require borrowers to pay for private mortgage insurance (PMI). In this case, the down payment is 10% of the purchase price, so it is likely that the lender will require PMI.

If You Made a Down Payment of $11,000 on a $110,000