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Seana Johnson, Coming back to my roots - renewing RE Lic (AgentProfesor)

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Rainer
225,526
Bob Betel
Allstar Home Mortgage, Inc. - Sweetwater, TN
President, Allstar Home Mortgage, Inc

There are loans out there that has the lender pay for the PMI insurance. It is built into the rate. PMI is a benefit for the lender in case of default, and for the borrower in order to get a loan. There are other ways to put less than 20% down and not have PMI, such as a Home Equity Line if you only have 10% down. I currently have a 1% down payment loan, so really anyone with a decent income and credit score can get approved.

Dec 12, 2016 12:16 PM
Rainmaker
5,215,898
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

A borrower with insufficient funds for a downpayment must endure the cost of PMI. It actually benefits the insurer as the odds are against a payout!

Dec 12, 2016 01:16 PM
Rainmaker
4,882,349
Richard Weeks
Dallas, TX
REALTOR®, Broker

It provides insurance for the lender, very little benefit for the borrower.

Dec 12, 2016 10:59 AM
Rainmaker
5,583,278
Barbara Todaro
RE/MAX Executive Realty - Happily Retired - Franklin, MA
Previously Affiliated with The Todaro Team

it only benefits the lender.....

Dec 12, 2016 10:31 AM
Rainmaker
5,104,931
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

PMI benefits the lender, not the borrower. It only costs the borrower.

Dec 13, 2016 03:43 AM
Ambassador
3,727,873
Patricia Kennedy
RLAH@Properties - Washington, DC
Home in the Capital

It benefits the investors.

Dec 12, 2016 08:35 PM
Rainmaker
3,986,258
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

It benefits the lender

Dec 12, 2016 03:28 PM
Rainmaker
1,844,171
Lyn Sims
Schaumburg, IL
Real Estate Broker Retired

It's definately not a benefit to the buyer. The bank is ready to foreclose on the poor buyer before the ink has dried on the note.

Dec 12, 2016 02:16 PM
Rainmaker
3,988,007
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

PMI benefits the investor and lender. It costs the borrower money up-front, monthly or both.

Dec 12, 2016 01:57 PM
Ambassador
1,076,531
John Meussner
Mortgages in AZ, CA, CO, DE, FL, GA, IN, MD, MN, MT, NC, NJ, NV, OK, OR, PA, SC, SD, TN, TX, UT, VA, WI - Fair Oaks, CA
#MortgageMadeEasy Fair Oaks, CA 484-680-4852

PMI offers a tremendous benefit to buyers & lenders

For buyers - without PMI, mortgage loans with less than 20% down would be unavailable, or would come at extremely high rates/costs to compensate for lender/investor risk

 

For lenders/investors, their risk of lending with less than 20% equity is covered by the insurance company so they experience less loss in the event of a foreclosure.

Dec 12, 2016 11:45 AM
Rainmaker
1,712,676
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

While going to real estate school my suggestion is to find a trusted loan officer and offer to take him to lunch and pay for it in excahnge for learning the mortgage end of the business. It will put you ahead of your fellow students.

 

Dec 12, 2016 11:36 AM
Rainmaker
1,502,858
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

PMI does not benefit the borrower, IMHO.

Dec 13, 2016 01:45 PM
Rainmaker
4,935,556
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Benefit the lender all the time, don't forget that.

 

Dec 13, 2016 09:35 AM
Ambassador
2,178,433
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Prop. Mgr, Wenatchee, WA

Mortgage insurance is intended to benefit (protect) the lender.  It is required for the buyer in order to get the loan on low downpayment loans.  The only real benefit to the buyer is the ability to qualify for the loan.

Dec 13, 2016 08:49 AM
Rainmaker
4,434,127
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Others have answered.

Dec 13, 2016 07:55 AM
Rainmaker
3,416,038
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

I have seen it where the lender pays the rate but the interest is much higher. I have also seen a prepaid fee where it was paid up front.  It only benefits the lender in the end

Dec 13, 2016 06:15 AM
Rainmaker
3,071,489
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

The benefit is typically to those on the receiving end of the money!

Dec 13, 2016 03:41 AM
Rainmaker
1,622,432
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • GRI • HAFA • PSC Calabasas CA

I'm sure it is somewhere there hiding...:) I'd suggest to read fine print very carefully. 

Dec 12, 2016 11:29 PM
Ambassador
6,392,899
Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

I suspect that it is mainly just a way for lenders to charge a little extra.

Dec 12, 2016 09:00 PM
Rainmaker
1,157,785
FN LN
Toronto, ON

You would need to read the mortgage insurance contract in order to determine the benefits.

Dec 12, 2016 08:11 PM
Ambassador
3,344,906
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services

It ONLY benefits the lender ... Period. End of story. 

Dec 12, 2016 07:34 PM
Ambassador
5,229,306
Debe Maxwell, CRS
Savvy + Company (704) 491-3310 - Charlotte, NC
The RIGHT CHARLOTTE REALTOR!

Seana Johnson - what the ads mean is that there will be no monthly PMI payments added to the mortgage even if you put less than 20% down.  Movement Mortgage & others pay the PMI upfront for the buyer as a lure/package perk.

Dec 12, 2016 05:07 PM
Ambassador
2,684,009
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

Money making racket for the lender.

Dec 12, 2016 03:49 PM
Rainmaker
4,272,548
Paul S. Henderson, REALTOR®, CRS
Fathom Realty Washington LLC - Tacoma, WA
South Puget Sound Washington Agent/Broker!

 We saw in the last real estate crisis where our clients he and That this insurance didn't help them a bit to keep them from foreclosure. I cannot think of any good things except that it's required on most loans....

Dec 12, 2016 03:40 PM
Rainmaker
4,319,419
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Seana Johnson - let the buyer decide what is the ultimate cost to them.

Dec 12, 2016 03:30 PM
Rainmaker
7,835,266
Roy Kelley
Retired - Gaithersburg, MD

Select the plan that best meets the need of your client.

Dec 12, 2016 02:59 PM
Rainmaker
711,752
Lynnea Miller
Bend Premier Real Estate - Bend, OR
Premier Real Estate Service in Central Oregon

It may be a requirement of the lender for some buyers to get a mortgage, but the only people who actually "benefit" would be the lender who collects money ever month for the insurance.

Dec 12, 2016 01:29 PM
Rainmaker
2,224,473
Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

It only benefits the lender. 

Dec 12, 2016 01:15 PM
Ambassador
5,048,718
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

I believe it only benefits a lender, not a borrower

Dec 12, 2016 12:52 PM
Rainer
417,071
Caroline Gerardo
Licensed in 20 states - Newport Beach, CA
C. G. Barbeau the Loan Lady nmls 324982

Mortgage insurance ONLY covers the lender. Generally cheaper to do an 80 10+10+

Dec 12, 2016 12:46 PM
Rainmaker
4,800,082
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Mortgage insurance is a benefit for the lender should the borrower default.

Dec 12, 2016 11:53 AM
Rainmaker
4,571,781
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

There is no benefit to the borrower --- only the lender.

Dec 12, 2016 11:17 AM
Rainmaker
1,466,207
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Seana Johnson PMi protects the lender in the event the borrower defaults.

Dec 12, 2016 11:17 AM