Finance
A South Carolina conventional mortgage requires a minimum 20% down payment to avoid:
AThe appraisal fee
BPrivate Mortgage Insurance (PMI)✓ Correct
CTitle insurance
DThe origination fee
Explanation
Conventional lenders require PMI when the down payment is less than 20% of the purchase price (LTV > 80%). A 20% or greater down payment eliminates the PMI requirement.
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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.
Title InsuranceInsurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
AppraisalA professional estimate of a property's market value prepared by a licensed or certified appraiser.
Math Concepts
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