Real Estate Math
A Massachusetts buyer makes a 15% down payment on a $680,000 home. The lender charges PMI of 0.9% per year. What is the annual PMI cost?
A$5,202✓ Correct
B$6,120
C$9,180
D$4,590
Explanation
Loan = $680,000 × 85% = $578,000. Annual PMI = $578,000 × 0.9% = $5,202. To solve this, multiply the relevant values: $680,000 at 15%.. The correct answer is $5,202.. This is a common calculation on the Massachusetts real estate exam.
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