Finance
Private mortgage insurance (PMI) on a conventional Utah mortgage can be canceled when:
AThe borrower has made 12 consecutive on-time payments
BThe loan-to-value ratio reaches 80% based on original value or reappraisal✓ Correct
CThe loan has been outstanding for 5 years
DThe borrower refinances the loan
Explanation
Under the Homeowners Protection Act, borrowers can request PMI cancellation when LTV reaches 80% of the original appraised value. PMI must be automatically terminated when LTV reaches 78% through scheduled payments (or borrowers can request termination at 80%).
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