Finance
A Washington borrower's FHA loan requires mortgage insurance premium (MIP). When can the annual MIP be cancelled on an FHA loan with a 3.5% down payment (96.5% LTV)?
AWhen LTV reaches 80%
BAfter 5 years of payments
CMIP cannot be cancelled — it continues for the life of the loan✓ Correct
DWhen the loan balance reaches 78% LTV based on original value
Explanation
For FHA loans with an original LTV above 90% (including the common 96.5% LTV with 3.
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