[quote=bearishgurl][quote=moneymaker]I will put it out there that I think paying for mortgage insurance is the biggest rip off going. If the risk was put on the banks then they may not have been such extravagant lenders during the bubble days.
-snip-[/quote]
MM, PMI has always been a FNMA requirement for mortgages of more than 80% LTV (not sure about Freddie Mac, since most of those mtgs pre-bubble were “in-house” Prime and Alt-A ARMs).
The only mortgage option today out of PMI is to put 20% down or get an FHA loan (w/now exorbitant MIP) or get a VA loan with 0 down and pay the funding fee and up-front points (if any) as sellers in this region typically no longer will.
Otherwise pay all cash. There is no free lunch.
It’s as it should be, IMHO.[/quote]
[quote=SD Realtor]As much as the conditions are great now, saying that the bank took no risk on your loan is a false statement. 5 years ago that was not the case. 5 years from now it may not be the case. Like it or not you signed a note that had several stipulations to it and in exchange for that note, you were lent a couple hundred thousand dollars. If you do not like the terms of the note then you should not have borrowed the money. Removal of PMI is not hard and has much more to do with comps then the pergola and matching chairs. I don’t mean to be harsh, just being honest.[/quote]
[quote=SD Realtor]If you believe present day risk has anything to do with future risk then this is a waste of time. Pay for the appraisal and get rid of your pmi. It is not terribly difficult.[/quote]
I totally agree with both BG and SD Realtor here. There is always risks involved for the bank. No free lunch as BG mentioned.
