Finance
A Minnesota couple is purchasing a $380,000 home. They have $50,000 for a down payment. What LTV will they have, and will they need PMI on a conventional loan?
A13.2% down, 86.8% LTV, PMI required
B13.2% down, 86.8% LTV - no PMI since it is over 10% down
C86.8% LTV, PMI required since LTV exceeds 80%✓ Correct
DPMI is never required on homes over $300,000
Explanation
Down payment % = $50,000 / $380,000 = 13.16%.
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