Finance
A VA loan in Arizona is available to eligible veterans and is characterized by:
AA required 10% down payment and no PMI
BNo down payment requirement and no private mortgage insurance✓ Correct
CA fixed interest rate set by the VA
DAvailability only for first-time homebuyers
Explanation
VA loans (backed by the U.S.
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Key Terms to Know
Private Mortgage Insurance (PMI)
Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Math Concepts
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