Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

1. Introduction to Accounting

Types of Accounting

Financial Accounting

1. Introduction to Accounting

Types of Accounting

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Multiple Choice

Private mortgage insurance (PMI) is mandatory for which of the following types of home loans?

FHA loans regardless of down payment

Jumbo loans with a down payment over 20%

Conventional loans with a down payment less than 20%

VA loans for all borrowers

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Verified step by step guidance

Understand the concept of Private Mortgage Insurance (PMI): PMI is a type of insurance that protects the lender if the borrower defaults on the loan. It is typically required for conventional loans when the borrower makes a down payment of less than 20% of the home's purchase price.

Review the characteristics of FHA loans: FHA loans are government-backed loans that require mortgage insurance regardless of the down payment amount. This is not considered PMI but rather a separate type of insurance specific to FHA loans.

Analyze Jumbo loans: Jumbo loans are large loans that exceed the conforming loan limits set by Fannie Mae and Freddie Mac. PMI is not mandatory for Jumbo loans with a down payment over 20%, as the borrower has already met the equity threshold.

Examine VA loans: VA loans are guaranteed by the Department of Veterans Affairs and do not require PMI, regardless of the borrower's down payment amount. Instead, VA loans may involve a funding fee.

Conclude with Conventional loans: Conventional loans require PMI when the borrower makes a down payment of less than 20%. This is the correct answer to the problem, as PMI is specifically tied to conventional loans under these conditions.