Finance
Private mortgage insurance (PMI) on a conventional loan is typically automatically cancelled when the loan balance reaches:
A80% of original appraised value or purchase price✓ Correct
B90% of original appraised value
C50% of original loan amount
D70% of current market value
Explanation
Under the Homeowners Protection Act, lenders must cancel PMI automatically when the loan balance reaches 78% of the original value, or borrowers can request cancellation at 80% LTV.
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