Finance
Private mortgage insurance (PMI) is typically required by lenders when a Montana buyer's down payment is:
ALess than 5%
BLess than 10%
CLess than 20%✓ Correct
DLess than 25%
Explanation
Conventional lenders typically require PMI when the buyer's down payment is less than 20% (LTV greater than 80%). PMI protects the lender—not the borrower—in case of default and can be removed once the borrower builds 20% equity.
Related Montana Finance Questions
- Under Montana law, what is the statutory redemption period after a non-judicial foreclosure sale on a deed of trust?
- In Montana, a 'mortgage servicer' is the entity that:
- A conforming loan is one that:
- In Montana, a 'construction loan' differs from a permanent mortgage in that:
- Discount points paid at loan origination are used to:
- An interest-only loan requires the borrower to pay:
- In Montana, 'land banking' in real estate investment refers to:
- A Montana lender who engages in 'predatory lending' practices may violate which laws?
Practice More Montana Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Montana Quiz →