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Questions and Answers
What percentage of the loan amount does PMI typically cover?
What percentage of the loan amount does PMI typically cover?
- 60% to 65%
- 40% to 45%
- 10% to 15%
- 25% to 30% (correct)
When can a lender foreclose on a property with PMI?
When can a lender foreclose on a property with PMI?
- At any time
- If borrower defaults (correct)
- If the property appreciates significantly
- Only if the borrower requests it
Who pays the PMI premiums?
Who pays the PMI premiums?
- Insurer
- Borrower (correct)
- Real estate agent
- Lender
Under what conditions is PMI required to be canceled by the lender?
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?
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?
What percentage of the original property value triggers automatic PMI cancellation?
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What is a common rule concerning secondary financing?
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?'
'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?'
'When can a second mortgage require a balloon payment?'
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'Who qualifies for combined monthly payments for both loans?'
'Who qualifies for combined monthly payments for both loans?'
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