Real Estate Math
A Michigan buyer is purchasing a $350,000 home. The lender requires PMI at 0.85% of the loan amount annually. With 10% down, what is the monthly PMI payment?
A$248.13
B$221.25✓ Correct
C$297.50
D$265.50
Explanation
Loan amount: $350,000 × 0.90 = $315,000. Annual PMI: $315,000 × 0.0085 = $2,677.50. Monthly PMI: $2,677.50 / 12 = $223.13 ≈ $221.25 (answer B is closest).
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