Real Estate Math

A Maine home was purchased for $295,000 with a 5% down payment. The PMI rate is 0.85% of the loan amount annually. Monthly PMI is:

A$197.91✓ Correct
B$208.75
C$219.56
D$225.00

Explanation

Loan = $295,000 × 95% = $280,250. Annual PMI = $280,250 × 0.

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