Finance
What is the primary benefit of a VA loan for eligible Connecticut veterans?
ABelow-market interest rate guaranteed by the VA
BNo down payment required and no private mortgage insurance (PMI)✓ Correct
CNo credit check required
DUnlimited loan amount
Explanation
VA loans, guaranteed 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.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
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.
Math Concepts
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