Real Estate Math
A North Dakota property sold for $180,000. The buyer paid $1,800 per year in PMI at 1%. After what loan balance would PMI no longer be required (assuming property value stays at $180,000)?
A$126,000
B$144,000✓ Correct
C$162,000
D$180,000
Explanation
PMI is cancelled when LTV reaches 80%. Required loan balance = 80% × $180,000 = $144,000. When the balance reaches $144,000, PMI can be cancelled.
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