Finance
In Michigan, the Homeowners Protection Act requires lenders to automatically cancel PMI when:
AThe loan reaches 5 years old
BThe borrower's equity reaches 22% of the original purchase price and payments are current✓ Correct
CThe interest rate drops below 5%
DThe borrower requests cancellation at any time
Explanation
The federal Homeowners Protection Act requires automatic PMI cancellation when the loan balance reaches 78% of the original purchase price (22% equity), provided the borrower is current on payments.
Related Michigan Finance Questions
- In Michigan, lender-required hazard (homeowners) insurance protects:
- In Michigan, a mortgage lender's security interest in real property is created by:
- In Michigan, a 'wraparound mortgage' involves:
- In Michigan, an 'assumable mortgage' means the buyer:
- In Michigan, a 'mortgage modification' agreement between lender and borrower typically:
- In Michigan, 'mortgage impound accounts' benefit lenders because they:
- Which type of mortgage loan is NOT insured or guaranteed by a government agency?
- In Michigan, a mortgage lien is created when:
Practice More Michigan Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Michigan Quiz →