Thread: Any banks 100% financing for 2nd mortgage?
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Old 04-08-2009, 02:34 PM
kvmj kvmj is offline
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Join Date: Dec 2001
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Quote:
Originally Posted by annadrose View Post
You are required by law to pay PMI until at least 20% of the home is paid off. PMI here is more info
Private Mortgage Insurance (PMI):Benefits, New Requirements, Homeowners' Protection Act, Terminating PMI, HPA Disclosures, and Home Value Increases - an FRBSF Brochure

PMI benefits the mortgage lender. If something happened (God Forbid) to me or hubby we would still be responsible for the mortgage this does not help us in any way. It helps the lender should we default they are insured for the home buyers' possible foreclosure.

Just because the govt backs the loan doesn't mean you don't pay it. We have an FHA loan and we are required to carry PMI.
FHA loans carry MIP which is similar. It carries an upfront fee which is usually added to the principal amount of your loan and financed as part of the mortgage.

PMI and MIP actually does help out the borrower by not having to come up with as large a down payment.
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