Finance
In South Dakota, the 'Homeowners Protection Act' (PMI Cancellation Act) gives borrowers with conventional loans the right to request PMI cancellation when:
AThey have made 24 consecutive on-time payments
BTheir loan balance reaches 80% of the original property value, and the loan has been in good standing✓ Correct
CThey have owned the property for at least 5 years
DInterest rates have declined by at least 1%
Explanation
The Homeowners Protection Act allows borrowers to request PMI cancellation when their loan balance reaches 80% of the original purchase price or appraised value (whichever was lower). PMI must be automatically cancelled when the balance reaches 78% of the original value, based on the original amortization schedule.
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