Finance
In Kansas, what is 'private mortgage insurance' (PMI) and when can it be cancelled on a conventional loan?
APMI is federal insurance that never cancels
BPMI protects the lender against default; it can be cancelled when LTV reaches 80% by payment or it automatically terminates at 78% LTV✓ Correct
CPMI is required for the life of the loan on all conventional loans
DPMI only applies to government-backed loans
Explanation
PMI protects the lender if the borrower defaults. Under the Homeowners Protection Act, borrowers can request cancellation at 80% LTV; PMI must automatically terminate at 78% LTV based on the original amortization schedule.
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