Finance
Private mortgage insurance (PMI) is typically required when a conventional loan's loan-to-value ratio exceeds:
A70%
B80%✓ Correct
C90%
D95%
Explanation
PMI is typically required when the borrower's down payment is less than 20% of the purchase price, meaning the loan-to-value ratio exceeds 80%. PMI protects the lender in case of default.
Related Iowa Finance Questions
- An Iowa buyer is purchasing a $350,000 home with 20% down. What is the LTV ratio on their mortgage?
- Iowa's community development block grant (CDBG) funds administered through Iowa communities may be used for:
- Iowa's assumption of mortgage means:
- Iowa's Iowa Homebuyer Education program, often required for certain loan programs, teaches prospective buyers about:
- Iowa's Opportunity Zone program created by the Tax Cuts and Jobs Act of 2017 provides incentives for:
- The loan-to-value (LTV) ratio on an Iowa property purchase of $250,000 with a $50,000 down payment is:
- Iowa's Community Reinvestment Act (CRA) obligations require banks to:
- Truth in Lending Act (TILA) disclosures required of Iowa mortgage lenders include:
Practice More Iowa Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Iowa Quiz →