Finance
Private mortgage insurance (PMI) in Oklahoma may be cancelled when:
AThe borrower has made 12 consecutive payments
BThe LTV reaches 80% of the original purchase price based on a new appraisal or scheduled payments✓ Correct
CThe loan balance is paid below $100,000
DThe borrower refinances the loan
Explanation
The Homeowners Protection Act (PMI Cancellation Act) requires lenders to cancel PMI when the LTV reaches 80% based on the original value (through amortization or appreciation via a new appraisal). Borrowers may also request cancellation at 80% LTV.
People Also Study
Related Oklahoma Questions
- An Oklahoma borrower is applying for a conventional loan. The lender requires private mortgage insurance (PMI) when:Finance
- The Truth in Lending Act (TILA) requires lenders to disclose the Annual Percentage Rate (APR) to mortgage borrowers. The APR differs from the interest rate because:Finance
- Oklahoma's mortgage lenders are required by TILA to provide the Loan Estimate (LE) to borrowers within:Finance
- Which federal law requires lenders to provide borrowers with a Loan Estimate within 3 business days of receiving a loan application?Finance
- Oklahoma's homestead exemption also provides which important legal protection for homeowners?Property Ownership
- USPAP (Uniform Standards of Professional Appraisal Practice) requires Oklahoma appraisers to:Property Valuation
- Oklahoma requires real estate brokers to maintain errors and omissions (E&O) insurance. E&O insurance protects against:Oklahoma License Law
- When appraising a property for insurance purposes in Oklahoma, the relevant value standard is typically:Property Valuation
Key Terms to Know
Private Mortgage Insurance (PMI)
Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
AppraisalA professional estimate of a property's market value prepared by a licensed or certified appraiser.
Math Concepts
Study This Topic
Practice More Oklahoma Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Oklahoma Quiz →