Finance
Private Mortgage Insurance (PMI) is typically required on a conventional loan when the borrower's down payment is:
ALess than 5%
BLess than 10%
CLess than 20%✓ Correct
DLess than 25%
Explanation
PMI is required on conventional loans when the down payment is less than 20% of the purchase price (i.e., the LTV exceeds 80%). PMI protects the lender, not the borrower.
Related West Virginia Finance Questions
- The loan-to-value ratio (LTV) is calculated as:
- The Truth in Lending Act (TILA) requires West Virginia lenders to disclose the:
- When a West Virginia lender requires 'escrow impounds' as part of a mortgage payment, the borrower is paying:
- In West Virginia, a mortgage that adjusts its interest rate periodically based on a financial index is called a(n):
- A West Virginia lender charges 2 discount points on a $150,000 mortgage. The dollar amount of the points is:
- In West Virginia, a 'home equity line of credit' (HELOC) differs from a home equity loan in that a HELOC:
- USDA Rural Development loans are available to West Virginia buyers in eligible rural areas and offer:
- A seller in West Virginia 'carries back' a loan to help the buyer purchase the property. This is called:
Practice More West Virginia Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free West Virginia Quiz →