Welcome, Guest
Pewter Report  >>  Boards  >>  Pirate's Cove (Moderators: 3rd String Kicker, PRPatrol)  >>  Topic: PMI insurance and the morgage crisis « previous next »
Page: 1

gruber

*****
Pro Bowler

Posts : 1594
Offline
: February 13, 2009, 08:49:34 PM

 I can't remember if we had a topic about this , I did a quick search and couldn't find one.


  Can someone explain why the PMI insurance did'nt cover these defaults? Maybe I have a misunderstanding of what PMI is.

olafberserker

*
Hall of Famer
******
Posts : 21323
Offline
#1 : February 13, 2009, 08:55:24 PM

One problem is that many buyers would take an 80% first mortgage and then a second mortgage of anywhere from 10-20% to cover the remainder and thus avoid PMI.  Not sure if that is the only problem, but that is one for sure.

dbucfan

*
Hall of Famer
******
Posts : 46194
Offline
#2 : February 14, 2009, 11:15:31 AM

What If Your Home Value Has Increased?

When making mortgage payments, most of the payments during the first few years are finance charges. Therefore, it can take 10 to 15 years to pay down a loan to reach 80 percent of the loan value. If the home prices in your area are rising quickly, your property value may increase so that you can reach the 80 percent mark a lot faster. Your property value could also increase due to home improvements that you make to your home.

http://www.frbsf.org/publications/consumer/pmi.html



\"A Great Coach has to have a Patient Wife, A Loyal Dog, and a Great Quarterback. . . . but not necessarily in that order\" ~ Coach Bud Grant
Page: 1
Pewter Report  >>  Boards  >>  Pirate's Cove (Moderators: 3rd String Kicker, PRPatrol)  >>  Topic: PMI insurance and the morgage crisis « previous next »
:

Hide Tools Show Tools