Finance
Private mortgage insurance (PMI) on a NJ conventional loan can be cancelled when the borrower's equity reaches:
A10% of the original home value
B20% of the original appraised value or purchase price under the Homeowners Protection Act✓ Correct
C25% of the current market value
D30% of the original loan amount
Explanation
The federal Homeowners Protection Act (HPA) requires lenders to cancel PMI automatically when the loan balance reaches 78% of the original value (22% equity), and borrowers may request cancellation at 80% (20% equity).
Related New Jersey Finance Questions
- A New Jersey 'purchase money mortgage' (PMM) is one where:
- A New Jersey condominium buyer who obtains an FHA loan will be required to pay:
- In a New Jersey transaction, points paid to reduce the interest rate are also called:
- The Equal Credit Opportunity Act (ECOA) prohibits lenders from discriminating in credit decisions based on:
- A NJ seller agreeing to pay mortgage points on behalf of the buyer is offering a form of:
- New Jersey's Realty Transfer Fee (RTF) is primarily paid by:
- Under RESPA, a real estate licensee who accepts a fee for referring a buyer to a title company would be:
- Under NJ law, a mortgage servicer who fails to provide timely payoff statements or releases of satisfied mortgages may be subject to:
Practice More New Jersey Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free New Jersey Quiz →