Question

Tania is interested in buying a $135,000 home. How big does her down payment need to be in order to avoid PMI?

Answer 1

To avoid Primary Mortgage Insurance (PMI) ,you need to have the loan balance be 80% or less of the home value.Therefore,Tania needs to give a down payment of at least 20% of $135000

= 20/100 * 135000 = $27000

So Tania needs to pay $27000 down payment or more in order to avoid PMI( Primary Mortgage Insurance ).