Real Estate Math

A Wyoming buyer wants to buy a home for $380,000 and make a 10% down payment. What is the minimum down payment needed?

A$3,800
B$38,000
C$76,000
D$342,000✓ Correct

Explanation

Down payment = $380,000 x 10% = $38,000. Loan amount = $380,000 - $38,000 = $342,000. With less than 20% down on a conventional loan, the buyer would typically need PMI.

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