Andrew and Jackie are considering taking out a $400,000 mortgage to buy a house.How much would they have to have for a down payment to not be required to buy PMI?
A)$40,000
B)$60,000
C)$80,000
D)$20,000

Question

Quizplus · Accepted Answer

PMI (Private Mortgage Insurance) is typically required when the down payment on a mortgage is less than 20% of the total loan amount. In this case, 20% of $400,000 is $80,000. Therefore, if Andrew and Jackie have $80,000 or more for a down payment, they will not be required to buy PMI. Choice C is the only option that meets this requirement.

Andrew and Jackie Are Considering Taking Out a $400,000 Mortgage