Question Details

N, Home Buyer in Chgo

How is the down payment calculated to avoid PMI?

Asked by N, Chgo Sun Apr 20, 2008

Say I want to buy a home appraised at 100,000, but was able to get a deal on it for $50,000. And to avoid PMI, I want to put 20% down. Is the 20% based on the 100k or 50k?

Help the community by answering this question:


Hi N,

Generally a down payment of 20% or more will help you avoid PMI. You must check with the lending institutions for their individual requirements to avoid a mandatory PMI mortgage requirement (insurance which protects the lender from a default, not the buyer).

Regards, C.
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0 votes Thank Flag Link Sun Apr 20, 2008
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