Finance
Private mortgage insurance (PMI) is typically required when:
AThe borrower has a credit score below 700
BThe down payment is less than 20% of the purchase price✓ Correct
CThe property is located in a flood zone
DThe loan term exceeds 30 years
Explanation
PMI is generally required by lenders when the borrower's down payment is less than 20% (LTV greater than 80%), protecting the lender in case of borrower default.
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