Question

Bella is interested in buying a $150,000 home. How big does her down

payment need to be in order to avoid PMI?
O
A. $20,000
O B. $30,000
O C. $25,000
O D. $120,000
SUBMIT
It’s B I think

Answer 1

B $30,000

Explanation:

PMI then with the given amount is how we find the answer

Answer 2

The answer is option B : $30,000.

Explanation:

To avoid Primary Mortgage Insurance or PMI, one need to have the loan balance to be 80% or less of the home value.

Hence, Bella needs to deposit a down payment of at least 20% of $150,000

This value becomes:

`0.20*150000=30000` dollars

Therefore, the answer is option B : $30,000.