Finance
What is the primary purpose of private mortgage insurance (PMI) in Ohio conventional loans?
ATo protect the buyer if they lose their job
BTo protect the lender if the borrower defaults on a low-down-payment loan✓ Correct
CTo insure the title against defects
DTo guarantee the property appraises at the purchase price
Explanation
PMI protects the lender against loss if the borrower defaults. It is typically required when the buyer's down payment is less than 20% of the purchase price on a conventional loan.
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