Lonette and al want to purchase a home and avoid paying private mortgage insurance (pmi). what minimum amount of down payment is required for them to purchase a $36,750 home to avoid pmi?

Private Mortgage Insurance (PMI) is an added insurance policy that protects the lender if you are unable to pay your mortgage. As a borrower, Lonette and Al should put down at least 20% so that they can avoid paying PMI. Therefore,

Minimum down payment = 0.20 * $36,750

Minimum down payment = $7,350

They should pay $7,350 to avoid paying PMI.

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