Finance
Private Mortgage Insurance (PMI) can typically be cancelled on a conventional loan when:
AThe loan reaches 5 years of age
BThe loan-to-value (LTV) ratio reaches 80% or below based on original purchase price or appraised value✓ Correct
CThe borrower's credit score improves to 750+
DThe property increases in value by 10%
Explanation
Under the Homeowners Protection Act, PMI must be cancelled automatically when the LTV reaches 78% of the original value, and borrowers may request cancellation at 80% LTV.
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