Finance
In Tennessee, 'private mortgage insurance' (PMI) is typically required when the buyer's down payment is less than:
A5%
B10%
C20%✓ Correct
D25%
Explanation
PMI is typically required on conventional loans when the down payment is less than 20% (LTV over 80%). PMI protects the lender against default risk on higher-LTV loans.
Related Tennessee Finance Questions
- The Federal Housing Administration (FHA) does which of the following?
- In Tennessee, a lender who requires a 'rate lock' from a borrower guarantees:
- In Tennessee, a deed of trust that is not paid off at closing must be:
- The annual percentage rate (APR) on a mortgage is HIGHER than the stated interest rate because it:
- A home equity loan differs from a HELOC in that a home equity loan:
- A Tennessee lender who provides a 'non-QM' (non-Qualified Mortgage) loan is offering a loan that:
- A USDA Section 502 Direct Loan is:
- A 'carryback loan' or 'seller financing' is most commonly used when:
Practice More Tennessee Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Tennessee Quiz →