A borrower purchased a home for $300,000 with a 5% down payment. Since the LTV is higher

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A borrower purchased a home for $300,000 with a 5% down payment. Since the LTV is higher than 80%, mortgage insurance is required. The mortgage insurance covers the first 25% of the loan. Now suppose the borrower defaults on the loan after paying it down to $275,000. The market value drops and is sold at a foreclosure sale for $200,000. After the insurance payment, how much is the net loss amount for the lender?

Posted Date: Dec 08, 2021 12:50 PM

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A borrower purchased a home for $300,000 with a 5% down payment. Since the LTV is higher

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Seln Home price 300000 3D Down Payment 5 300000 X 5 3D 1500 0 loan amoun t 951 300... View the full answer

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