Which of the following is true of private mortgage insurance?
A) It generally is required if the borrower makes a down payment of less than 20%.
B) It costs $20 to $25 per year.
C) It protects the borrower in the event that the lender goes bankrupt.
D) It is another name for title insurance.

Question

Quizplus · Accepted Answer

Private mortgage insurance (PMI) is typically required by lenders when the borrower makes a down payment of less than 20% of the home's purchase price. This insurance protects the lender in case the borrower defaults on the loan.

Which of the Following Is True of Private Mortgage Insurance