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When the Hamilton s purchased their home they took out a $ 3 0 0 , 0 0 0 mortgage with a 3 0 -
When the Hamiltons purchased their home they took out a $ mortgage with a year term and an interest rate of The lender requires PMI because the borrower's down payment is less than of the home's value. The PMI rate is of the loan amount annually, and the borrower pays it monthly.
The PMI covered the lender up to of the original loan amount.
Unfortunately, after being in the home for seven years, the Hamiltons defaulted on the mortgage and the lender foreclosed. At foreclosure, the lender auctioned the home and received $ for the home. What was the lenders loss in this loan?
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