Real Estate Math

A Colorado buyer makes a 5% down payment on a $380,000 home. If PMI costs 0.8% annually on the loan amount, what is the monthly PMI payment?

A$223
B$239
C$242✓ Correct
D$253

Explanation

Loan amount = $380,000 × 95% = $361,000. Annual PMI = $361,000 × 0.

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