Finance
Private Mortgage Insurance (PMI) is typically required on conventional loans when the borrower's down payment is:
ALess than 5%
BLess than 10%
CLess than 20%✓ Correct
DLess than 25%
Explanation
PMI is generally required on conventional loans when the borrower's down payment is less than 20% (LTV greater than 80%). PMI protects the lender if the borrower defaults. Under the Homeowners Protection Act, PMI must be cancelled when LTV reaches 80%.
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