Finance

A Louisiana homeowner with an FHA loan wants to refinance to a conventional loan to eliminate mortgage insurance. The homeowner should generally wait until the LTV is at or below:

A90%
B85%
C80%✓ Correct
D75%

Explanation

For conventional loans, private mortgage insurance (PMI) is typically required when the LTV exceeds 80%. Once the LTV reaches 80% or below, the borrower can often cancel PMI or refinance without it.

Related Louisiana Finance Questions

Practice More Louisiana Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Louisiana Quiz →