Private mortgage insurance typically is not needed with a down payment of 20% or larger.Why?
A)Not true,all mortgage loans require PMI.
B)Buyers who have large down payments don't choose the extra insurance.
C)Buyers who invest large down payments are more motivated to make their mortgage payments.
D)All of the above
E)None of the above

Question

Quizplus · Accepted Answer

Buyers who can afford a down payment of 20% or more are considered less risky by lenders, as the substantial down payment reduces the loan-to-value ratio, indicating the buyer has more at stake and is thus more likely to make their mortgage payments.

Private Mortgage Insurance Typically Is Not Needed with a Down