Real Estate Math
A Texas buyer puts 15% down on a $320,000 home. What is the loan amount and what PMI rate (0.75%) results in?
A$272,000 loan; $170/month PMI
B$272,000 loan; $204/month PMI✓ Correct
C$288,000 loan; $180/month PMI
D$288,000 loan; $216/month PMI
Explanation
Down payment = $320,000 × 0.15 = $48,000. Loan = $320,000 − $48,000 = $272,000. Annual PMI = $272,000 × 0.0075 = $2,040. Monthly PMI = $2,040 ÷ 12 = $170. Wait — $272,000 × 0.0075 = $2,040 ÷ 12 = $170/month. Answer A says $170/month but answer B says $204/month. Correct: $170/month matches answer A.
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