Finance
A Washington borrower has a conventional loan with a loan-to-value ratio of 82%. The lender will require:
ANo PMI because the LTV is below 90%
BPMI because the LTV exceeds 80%✓ Correct
CFHA mortgage insurance
DA second mortgage
Explanation
Private mortgage insurance (PMI) is typically required on conventional loans with an LTV above 80%. At 82% LTV, the borrower has not yet reached the 20% equity threshold to avoid PMI.
Related Washington Finance Questions
- In Washington, the Federal Housing Administration (FHA) insures loans made by:
- In Washington, which type of mortgage allows the borrower to use the property as collateral without it being in the borrower's name (used for investment purposes)?
- Under Washington's Deed of Trust Act (RCW 61.24), the non-judicial foreclosure process requires a minimum notice period before the trustee's sale of:
- Under the federal Truth in Lending Act (TILA), the Annual Percentage Rate (APR) disclosed to a Washington borrower:
- In Washington, a deed of trust involves how many parties?
- A Washington seller is willing to carry back a purchase money deed of trust to help the buyer finance the purchase. This arrangement is called:
- A Washington buyer uses a bridge loan to:
- A Washington mortgage servicer who receives a monthly payment applies it in which order?
Practice More Washington Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Washington Quiz →