When I bought my home years ago I had to pay for PMI untill I had 20% equity in my home. I was told it would step in and protect the bank if I walked away from my loan obligation and the bank had to forclose. So with all these forclosers in the news today why isn't PMI paying off and protecting the banks or was it a scam to begin with?
2007-10-01 02:40:50 · 14 answers · asked by wrhatt 2 in Business & Finance ➔ Renting & Real Estate
PMI is paying off on all these foreclosures. And in doing so it is often the savior to the defaulting borrower for the bank to not seek more money from them after liquidating their property. PMI is not a scam
2007-10-01 03:51:40 · answer #1 · answered by linkus86 7 · 1⤊ 4⤋
The reason you paid PMI is you did not have 20%to put into the house and wanted the house right now If you stopped making payment they would still take your home When home values stop going up 20 % a year y'all gave up Next time save your money and put 20% down You toke a chance and lost It is no ones fault nor to blame on this The PMI is to protect the bank not you they only pay that when YOU stop making payments and they foreclose Bet a year or so ago you were telling all your friends how rich and smart you were This should demonstrate to us all not all people should own a home many need to be more responsible with their money
2016-03-18 21:41:14 · answer #2 · answered by Anonymous · 0⤊ 2⤋
This Site Might Help You.
RE:
Is PMI (mortgage protection insurance) a scam?
When I bought my home years ago I had to pay for PMI untill I had 20% equity in my home. I was told it would step in and protect the bank if I walked away from my loan obligation and the bank had to forclose. So with all these forclosers in the news today why isn't PMI paying off and protecting...
2015-08-14 00:04:57 · answer #3 · answered by Anonymous · 0⤊ 0⤋
The mortgage protection insurances that I got offered from my insurance broker did all fail and I am happy that I found a site that warned me about the bad and pointed me to the best performing mortgage protection insurances that have been proven to pay out to the insured person.
I am sure you will find a solution for your home and all information you need to know before closing a PMI.
Just use the Search in the right corner of the page in case the needed information is not displayed immediately.
Good luck with your research and I hope you never need that insurance!
Warm regards
Anastasia
2014-05-11 09:11:40 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Pmi Scam
2016-11-01 22:59:35 · answer #5 · answered by ? 4 · 0⤊ 1⤋
Because people are taking out 80/20 loans so they don't have to pay the PMI. It's NOT a scam, if you can't afford the 20% down and can't afford the PMI then you have no business taking out a loan. People get all starry eyed when they see great deals on ARMs and interest only loans, and they jump at the chance, but every good thing has its downfalls. THIS is one of them. People are foreclosing because they can't afford that great house once their rate adjusts or when they have to pay more than interest alone.
It has nothing to do with PMI.
2007-10-01 03:14:32 · answer #6 · answered by Roland'sMommy 6 · 1⤊ 1⤋
You who think PMI is good, I have to disagree. Read the headlines from the news today from Citigroup; " will take more than $3 billion in writedowns for securities backed by underperforming mortgages ". PMI is not stepping in and covering these loans, if so then Citigroup wouldn't be taking this hit. And if people had 20% equity in their homes when they bought (which I doubt), they could refinance and not be foreclosed on. If PMI works then what am I missing?
2007-10-01 10:10:45 · answer #7 · answered by nonoteunsung 1 · 2⤊ 0⤋
Of course it's a scam. Have you ever spoken to a PMI representative at your Mortgage Lender's office? I highly doubt it. They are so well insulated from anyone who questions the system. It's a way to funnel money (in the form of PMI payments) into their coffers when they offer low interest rates. It does not protect the payer, it only protects the lender.
2013-09-19 07:31:19 · answer #8 · answered by Danial 1 · 2⤊ 0⤋
It is not and never was a scam. It is the insurance necessary to protect the lender from a borrower who can not provide 20% down. Many borrowers had their PMI removed from their obligation as the housing boom helped to create fast equity in their homes.
2007-10-01 04:25:41 · answer #9 · answered by Christiane 3 · 1⤊ 0⤋
I agree with the Best Answer that PMI isn't a scam, but they sure make you jump through burning rings of fire to get it off of your mortgage. It isn't removed automatically when you've paid down to 20%, and it costs a lot of extra cash to get your home appraised and file paperwork to your mortgage company to get it removed. About $700-900.
2014-01-13 09:17:31 · answer #10 · answered by untoldhavoc 2 · 2⤊ 0⤋