Finance
What is the primary purpose of Private Mortgage Insurance (PMI) in Illinois real estate transactions?
ATo protect the buyer if the home loses value
BTo protect the lender if the borrower defaults on a low down payment loan✓ Correct
CTo replace homeowner's insurance on high-value properties
DTo satisfy Illinois state insurance requirements for all mortgages
Explanation
Private Mortgage Insurance (PMI) protects the lender, not the borrower. It is typically required when a buyer puts down less than 20% of the purchase price.
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