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A home's purchase price is $400,000. The buyer puts down 20%. What is the loan amount?

General Mortgage Knowledge · 20% of the SAFE exameasy

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Correct answer: $320,000

Down payment = $400,000 × 20% = $80,000. Loan amount = $400,000 - $80,000 = $320,000. LTV = 80%, so no PMI required.

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