Finance
In Kentucky, private mortgage insurance (PMI) on a conventional loan can be cancelled when:
AThe loan has been in place for 5 years
BThe LTV ratio reaches 80% based on original value✓ Correct
CThe borrower has no late payments for 12 months
DThe property value increases by 10%
Explanation
Under the Homeowners Protection Act, PMI on conventional loans must be cancelled when the LTV ratio reaches 80% of the original purchase price, provided the borrower has a good payment history.
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