Finance
In Colorado, 'private mortgage insurance' (PMI) can be cancelled by a borrower on a conventional loan when:
AThe borrower has lived in the home for 5 years
BThe loan-to-value ratio reaches 80% based on current value✓ Correct
CThe borrower's credit score improves to 750
DPMI cannot be cancelled once it is in place
Explanation
Under the Homeowners Protection Act (HPA), borrowers can request PMI cancellation when the LTV ratio reaches 80% of the original value (based on original purchase price or appraised value at origination). PMI must be automatically terminated at 78% LTV.
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