Finance
Private Mortgage Insurance (PMI) is typically required when:
AThe borrower has a credit score below 700
BThe loan-to-value ratio exceeds 80%✓ Correct
CThe property is used as a rental investment
DThe borrower is a first-time homebuyer
Explanation
PMI protects the lender if the borrower defaults. It is typically required on conventional loans when the LTV exceeds 80% (down payment is less than 20%). PMI can be cancelled once equity reaches 20%.
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