Sam bought a house that costs $1,000,000. Sam got a 97% LTV loan. The lender demanded that Sam buy private mortgage insurance to insure the portion of the loan over 80% LTV. Suppose 5 years later, Sam's mortgage balance is $900,000. However Sam defaults and his house sells for $750,000 in a foreclosure auction. How much will the mortgage insurance company pay Sam's lender? OA. $170,000.00 O B. $250,000.00 OC. $150,000.00 O D. $220,000.00
Sam bought a house that costs $1,000,000. Sam got a 97% LTV loan. The lender demanded that Sam buy private mortgage insurance to insure the portion of the loan over 80% LTV. Suppose 5 years later, Sam's mortgage balance is $900,000. However Sam defaults and his house sells for $750,000 in a foreclosure auction. How much will the mortgage insurance company pay Sam's lender? OA. $170,000.00 O B. $250,000.00 OC. $150,000.00 O D. $220,000.00
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Transcribed Image Text:QUESTION 8
Sam bought a house that costs $1,000,000. Sam got a 97% LTV loan. The lender demanded that Sam buy private mortgage insurance to insure the portion of the
loan over 80% LTV. Suppose 5 years later, Sam's mortgage balance is $900,000. However Sam defaults and his house sells for $750,000 in a foreclosure auction.
How much will the mortgage insurance company pay Sam's lender?
O A. $170,000.00
O B. $250,000.00
OC. $150,000.00
O D. $220,000.00
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