Finance
Oklahoma borrowers who have a loan balance of more than 80% LTV on a conventional loan and want to eliminate PMI should know that:
APMI can never be removed from a conventional loan
BUnder the Homeowners Protection Act, they can request PMI cancellation when the loan balance reaches 80% of the original purchase price, or it automatically terminates at 78% LTV✓ Correct
CPMI is removed automatically after 5 years
DOnly the lender decides when PMI is removed with no borrower rights
Explanation
The federal Homeowners Protection Act requires lenders to allow PMI cancellation requests at 80% LTV (based on original value/purchase price) and mandates automatic cancellation at 78% LTV. This applies to most conventional loans originated after July 29, 1999.
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