Finance
A Massachusetts buyer obtaining a conventional mortgage with 10% down will pay PMI until:
AThey refinance the loan
BThe loan balance reaches 80% of the original appraised value (LTV = 80%)✓ Correct
CThey have owned the home for 5 years
DThe home increases in value by 20%
Explanation
Under the Homeowners Protection Act, borrowers may request PMI cancellation when the LTV reaches 80% based on original value. PMI is automatically terminated at 78% LTV.
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