Finance
Private mortgage insurance (PMI) is canceled automatically on a conventional loan when the loan-to-value ratio reaches:
A90%
B80%
C78%✓ Correct
D75%
Explanation
Under the Homeowners Protection Act, PMI is automatically canceled when the loan balance reaches 78% of the original property value based on the scheduled amortization. Borrowers may request cancellation at 80% LTV with good payment history.
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