Finance
A Texas buyer qualifies for a conventional loan with a 10% down payment. The lender requires PMI. The annual PMI premium is 0.7% of the loan amount. On a $300,000 purchase, what is the monthly PMI cost?
A$157.50✓ Correct
B$175
C$210
D$105
Explanation
Loan amount = $300,000 × 90% = $270,000. Annual PMI = $270,000 × 0.7% = $1,890. Monthly PMI = $1,890 / 12 = $157.50.
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