Questions and Answers
What percentage of the loan amount does PMI typically cover?
25% to 30%
When can a lender foreclose on a property with PMI?
If borrower defaults
Who pays the PMI premiums?
Borrower
Under what conditions is PMI required to be canceled by the lender?
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What is one type of payment structure for PMI premiums?
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What percentage of the original property value triggers automatic PMI cancellation?
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What is a common rule concerning secondary financing?
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'If the first mortgage has variable payments, what type of payments must the second mortgage have?'
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'When can a second mortgage require a balloon payment?'
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'Who qualifies for combined monthly payments for both loans?'
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