If you make a down payment of $11,000 on a house worth $110,000, the lenders will require _____ because of the size of the down payment.
A) closing points
B) a bond
C) private mortgage insurance (PMI)
D) application fees
E) homeowner's insurance

Question

Quizplus · Accepted Answer

The lenders will require private mortgage insurance (PMI) because of the size of the down payment. PMI is required when the down payment is less than 20% of the home's value.

If You Make a Down Payment of $11,000 on a House