FinancingMEDIUM
Under the Homeowners Protection Act, PMI must be automatically terminated when the loan-to-value ratio reaches:
Correct Answer
B) 78%
The Homeowners Protection Act requires automatic termination of PMI when LTV reaches 78% based on the original property value. Borrowers can request cancellation at 80% LTV. This applies to conventional loans originated after July 1999.
Answer Options
A
80%B
78%C
75%D
70%Video Explanation3 min
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Related Topics & Key Terms
Related Topics:
loan-to-value-ratio-calculationprivate-mortgage-insurance-basics
Key Terms:
Homeowners Protection ActPMI automatic terminationloan-to-value ratio78% LTVprivate mortgage insurance cancellation
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