Posted on 01/28/2017 6:44:52 PM PST by VitacoreVision
No offense to your friend. If you know anyone with PMI, suggest they put the date on their e-calendar.
He didn’t blame anyone but themselves; he learned that Uncle Sam ain’t his daddy, and he’d have to look out for himself...
None taken; I myself briefly paid it and before it was due to expire had the home re-appraised during the bubble and magically didn’t need it anymore (got out of it early)...
You cannot get out of FHA MIP anymore . Once you close on the loan you are stuck with it for the entire loan term.
Maybe, as long as you don’t refinance the loan (which is basically buying the home from yourself); that is how it came about (interest rates had fallen).
No, beginning in 2010 there is no getting out of paying the premium no matter how much equity you have in your home. You would have to refinance into a FNMA mortgage with a minimum of 20% equity.
The cost of insurance should reflect the cost of insuring the mortgages. If the insurance is too expensive, that means the loan is too risky. The price signal serves a vital function, and should not be defeated.
Gosh - he stopped a welfare program for those who wanted homes they couldn’t really afford and the banks that made risky loans to them - what a louse!
I’ll defer to your knowledge in this; I’m glad I got out when I did (though I understand the purpose of the program). Years ago when I worked in the industry I was always taken aback by the “no doc” and “no income verification” loans; I guess the defaults were just bound to happen...
I’m building a lake cabin and we are still waiting for windows promised the first week in January. Due to building boom, they say. I say, good. I’ll wait.
You are definitely right about the no income verification loans. I knew it was gonna get ugly when W-2 borrowers we allowed to start using them.
You could easily see the storm brewing here in NJ with mortgages years ago; there were a lot of assumptions about the state of our economy that left little room for borrowers as we started bleeding jobs. I never understood why banks would want to lend to some of those borrowers you describe, but I guess they thought they’d end up with properties that would only increasing in values...
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