If you buy a home with less than 20% down, you will pay an additional monthly fee, PMI (private mortgage insurance), until you reach 20% equity. Keep track of when you reach 20% equity so you
can request to have your PMI removed. Ken Buckmiller’s home recently appraised at $290,000. His
mortgage was for $275,000 at 5% for 30 years with PMI of $229.17 per month. What is his monthly
payment plus PMI? His mortgage balance is currently $222,990. Has he reached 20% equity? (Use
Table 15.1.) (Do not round intermediate calculations. Round your answer to the nearest cent.)
Monthly payment $ 1,705.43
Has he reached 20% equity? Yes