Finance

Private Mortgage Insurance (PMI) on a conventional loan is typically required until the borrower's equity reaches:

A10%
B15%
C20%✓ Correct
D25%

Explanation

Under the Homeowners Protection Act, PMI must be automatically cancelled when the borrower reaches 20% equity (80% LTV) on a conventional loan, provided the borrower has a good payment history.

Related Wisconsin Finance Questions

Practice More Wisconsin Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Wisconsin Quiz →