Private Mortgage Insurance

question 42

Multiple Choice

Private mortgage insurance

• A) Cannot be avoided.
• B) Is part of all mortgages.
• C) Is usually required if the down payment is less than 25%.
• D) Must be terminated automatically when the homeowner's equity reaches 22% of the property value at the time the mortgage was executed.
• E) Protects the buyer from financial loss if the value of the home increases.

---

Definitions:

Production Process

A sequence of actions, methods, or operations involved in the manufacturing or creation of goods and services.

Conscientious

Describes a person who is diligent, careful, and thorough in their duties or tasks.

Aimless

Lacking a goal, direction, or purpose.

Organic Product

A substance that results from organic chemistry reactions, typically containing carbon atoms.