Finance
Private Mortgage Insurance (PMI) is typically required when:
AThe loan-to-value ratio exceeds 80%✓ Correct
BThe borrower has a credit score below 700
CThe property is located in a flood zone
DThe loan term exceeds 30 years
Explanation
PMI is generally required on conventional loans when the down payment is less than 20%, resulting in a loan-to-value (LTV) ratio greater than 80%. PMI protects the lender if the borrower defaults.
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