If You Make a Down Payment of $11,000 on a House

question 48

Multiple Choice

If you make a down payment of $11,000 on a house worth $110,000, the lenders will require _____ because of the size of the down payment.

• A) closing points
• B) a bond
• C) private mortgage insurance (PMI)
• D) application fees
• E) homeowner's insurance

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Definitions:

Negligence Theory

A legal theory grounding the claim that a party's failure to act with the level of care considered reasonable under the circumstances leads to harm or damage to another.

Propensities

Natural inclinations or tendencies to behave in a particular way.

Stitches

A method of closing wounds with thread and a needle to promote healing and minimize scarring.

Contributory Negligence

A legal defense where if the plaintiff is found to have contributed to their own harm, they may be barred from recovery or have their compensation reduced.