Finance
Private Mortgage Insurance (PMI) is typically required when the buyer's down payment is:
ALess than 5% of the purchase price
BLess than 10% of the purchase price
CLess than 20% of the purchase price✓ Correct
DLess than 25% of the purchase price
Explanation
Conventional lenders typically require Private Mortgage Insurance (PMI) when the buyer's down payment is less than 20% of the purchase price (LTV exceeds 80%). PMI protects the lender — not the borrower — in case of default.
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