A borrower obtained a conventional loan with 5% down payment in 2020. The borrower has made all payments on time and wants to cancel PMI. What additional requirement might the lender impose beyond reaching 80% LTV?
Correct Answer
A) Waiting period of at least 2 years from loan origination
Many lenders require a waiting period (often 2 years) from the loan origination date before allowing borrower-requested PMI cancellation, even if the 80% LTV threshold has been reached through payments or appreciation.
Why This Is the Correct Answer
Many lenders require a waiting period (often 2 years) from the loan origination date before allowing borrower-requested PMI cancellation, even if the 80% LTV threshold has been reached through payments or appreciation.
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