A lender will usually require a down payment of ____ or more for you to avoid having to pay private mortgage insurance (PMI).
A)10%
B)15%
C)20%
D)25%
E)30%

Question

Quizplus · Accepted Answer

Lenders typically require a down payment of at least 20% to avoid having to pay private mortgage insurance (PMI). If you can only provide a smaller down payment, the lender will require you to purchase PMI to protect them in case you default on the loan. However, if you can put down at least 20%, you won't have to pay for PMI, which can save you thousands of dollars over the life of your loan.

A Lender Will Usually Require a Down Payment of ____