Finance
What is 'private mortgage insurance' (PMI) and when is it typically required in Delaware?
AInsurance the borrower purchases to protect the borrower if they lose their job
BInsurance required by the lender when the borrower's down payment is less than 20% (LTV above 80%) to protect the lender against default✓ Correct
CInsurance required on all Delaware mortgage loans regardless of down payment size
DLife insurance required to ensure the mortgage is paid if the borrower dies
Explanation
Private mortgage insurance (PMI) is required on conventional loans when the borrower makes a down payment of less than 20% (LTV above 80%). PMI protects the lender — not the borrower — against loss if the borrower defaults.
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