Finance
A NH borrower with a conventional mortgage may request cancellation of PMI when:
AThe loan balance reaches 80% LTV based on the original purchase price✓ Correct
BThe loan has been outstanding for 5 years
CThe borrower's income increases significantly
DThe property is refinanced
Explanation
Under the Homeowners Protection Act (HPA), a borrower can request cancellation of PMI when the loan balance reaches 80% of the original purchase price or appraised value (at origination). PMI must be automatically terminated when the balance reaches 78% LTV through scheduled payments.
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