Real Estate Math

A Texas home sold for $460,000. The buyer paid $23,000 down (5%). The PMI rate is 0.85% of the loan amount per year. What is the monthly PMI?

A$312✓ Correct
B$312.41
C$316
D$325

Explanation

Loan = $460,000 − $23,000 = $437,000. Annual PMI = $437,000 × 0.0085 = $3,714.50. Monthly = $3,714.50 ÷ 12 = $309.54 ≈ $312 (nearest answer).

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