For loans with a term greater than 15 years and an LTV of 90% or less, how long will mortgage insurance be included in payments?

For loans with a term greater than 15 years and a loan-to-value (LTV) ratio of 90% or less, mortgage insurance is required to be included in the payments for a specific duration. In this context, the correct answer indicates that mortgage insurance will be included for 11 years.

This requirement aligns with conventional loan guidelines that stipulate that once certain conditions are met—particularly reaching a specific equity threshold in the property—the borrower may have the option to cancel or stop paying mortgage insurance premiums. The 11-year duration established here provides a definite timeline during which the borrower is protected while they build equity in their home, balancing the lender’s risk while allowing the borrower a clear understanding of their cost obligations.

In contrast, the other durations mentioned—5 years, 7 years, and "no limit"—do not reflect the current guidelines for this specific scenario. Generally, the 11-year requirement gives borrowers a structured timeline, promoting financial planning and management while still offering protection to the lending institution until a more significant portion of the loan has been repaid.