Nothing can ever be ‘reinstated’ to something that never existed.
PMI cannot be added to a loan at any point in the future to an existing loan. With FHA it’s called MIP/MMI.
Refinancing with less than 20% equity will add mortgage insurance.
In some cases it can make sense for someone with a higher rate without mortgage insurance to refinance
into a loan with mortgage insurance at a lower rate.
VA loans have no mortg ins. Veterans deserve a break. With other loans it’s possible to have a program called ‘Lender Paid’ mortgage insurance (LPMI)
‘Banks’ aren’t getting a free ride.
What most people don’t seem to understand OR want to believe is that a ‘bank’ doesn’t own your loan nor did they lend you their money for 30 years.
BANKS HAVE DIVISONS THAT ARE MORTGAGE BROKERS.
They make money by originating loans.
Many people falsely believe that all banks have great mortgage rates or are easier to deal with.
Why are banks viewed as big bad major crooks ?
Nobody has to use a bank.
Nobody has to pay credit card interest.
They offer a service that comes with costs.
If you think that there is no risk with low down mortgages and like the current interest rates and don’t think that there should be PMI,
you could buy MBS and hope that you receive the return that you are promised.
IMO it would be better if mortgage insurance didn’t exist and 20% down was required to a buy a house.
Houses would sell for MUCH less and fewer people
would be ‘home owners’
I agree with you that a (poor) buyer should not have to subsidize the risk of the wealthy(banks)
… I don’t think that the (poor) buyer who has little equity should be allowed to buy a house in the first place. That’s the concept that is wrong.
