Finance
Private Mortgage Insurance (PMI) can be canceled on a conventional loan in Arizona when:
AThe borrower has made 12 on-time payments
BThe LTV reaches 80% based on the original purchase price or appraised value✓ Correct
CThe loan is 5 years old
DThe borrower requests it in writing
Explanation
Under the Homeowners Protection Act, PMI must be cancelled when the LTV reaches 80% based on the original value (purchase price or appraised value) through scheduled payments, or when the borrower proves 80% LTV by a new appraisal.
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