Problemas
8. Which term describes the bank-required Insurance that covers you, If you are not able to repay the loan. This can help if the sale of your foreclosed home is not sufficient to fully repay the loon. A. Down payment Insurance B. Homeowner's insurance C. Federal Home Insurance D. Private mortgage Insurance (PMI) A B C D
Roztwór
Manuel
experto · Tutor durante 3 años
4.6
(355 Votos)
Respuesta
D
Explicación
## Step 1The question is asking for the type of insurance that is required by banks to cover the borrower in case they are unable to repay their loan. This insurance is particularly useful when the sale of the foreclosed home is not sufficient to fully repay the loan.## Step 2Let's analyze each option:### A. Down payment InsuranceThis is not a recognized term in the context of mortgage loans.### B. Homeowner's insuranceThis is a type of insurance that covers damages to an individual's residence, but it does not cover the inability to repay a loan.### C. Federal Home InsuranceThis is not a recognized term in the context of mortgage loans.### D. Private mortgage insurance (PMI)This is a type of insurance that is required by lenders when the down payment on a house is less than 20%. It protects the lender in case the borrower defaults on the loan.## Step 3Based on the above analysis, the correct answer is D. Private mortgage insurance (PMI).