To be honest, that thought has crossed my mind. But I’m to old fashioned, I guess, because I still believe you should honor your agreements. My honor doesn’t have a price tag attached to it. Sadly, in todays world I feel like a relic, but when I lay my head down at night my conscience is clean.
We have excellent credit, and as of today, job stability with excellent income to ratio. We have never been late with a payment, and in fact because of the way my husband is paid we make weekly payments. We were told that because of our decrease in home value, we would be required, by federal law, to pay PMI to the tune of $90.00 a month.
In principle I refused, even though the drop in interest rate would probably work out about the same.
The only "loan product" we could get that did not include the PMI was a in house mortgage (they don't have the Federal government PMI mandate) that would require us to take out $10,000 in "new money". We don't want more money!
It is counter intuitive that the Federal government would penalize the people with excellent credit, yet apparently bend over backwards to bail out those that stop making their payments on time, or paying them at all.
Again, for us, this is not a do or die situation, but it is the principle of the whole government take over!
Soon your word may be the only thinkg you have left. (Not saying you particular but you as in all of us).
When that stage hits, people who honor their word will be in a better position than those that don't and the two will be known, at least on a local level.