medium · National Real Estate Exam financing

In the context of conventional lending, what does the 'original value' of the property refer to when determining the schedule for private mortgage insurance (PMI) termination?

1. The lesser of the sales price or the appraised value at the time of the loan's consummation.
2. The contract sales price of the home, regardless of the appraised value on file
3. The value of the property shown on the most recent local property tax assessment roll
4. The current fair market value of the home as newly determined by an appraisal the borrower requests

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