Drake purchased a house for $800,000 that is currently worth $720,000. The original loan balance was $600,000,
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Drake purchased a house for $800,000 that is currently worth $720,000. The original loan balance was $600,000, the current loan balance is $581,000, and Drake is current on his mortgage payments. If the loan has PMI, it would protect the lender for losses up to 25% of the original loan amount
a. Is PMI currently in place (answer yes, no, or maybe)?
b. Why did you answer part a as you did?
c. If your answer to part a is maybe, then write "maybe" as your answer.If your answer to part is no or yes, then what would the lender's loss be if the house is sold today for $417,000?
Related Book For
South-Western Federal Taxation 2020 Comprehensive
ISBN: 9780357109144
43rd Edition
Authors: David M. Maloney, William A. Raabe, James C. Young, Annette Nellen, William H. Hoffman
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