Finance
Private Mortgage Insurance (PMI) is typically required when a borrower's down payment is:
ALess than 5%
BLess than 10%
CLess than 20%✓ Correct
DLess than 30%
Explanation
PMI is generally required when the loan-to-value (LTV) ratio exceeds 80%, meaning the borrower's down payment is less than 20%. PMI protects the lender (not the borrower) against default losses.
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