With private mortgage insurance, many lenders will allow you to borrow more than 80% of the appraised value of the home. What is the purpose of this action?

A) The insurance will pay for damages to the home during the course of the mortgage.
B) It is required by federal and state law.
C) It protects the lender in the event the borrower is unable to make the mortgage payments.
D) It protects the borrower from foreclosure.
E) None of the above

Answer: C

Business

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