225,526
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.
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Ryan Huggins - Thousan...
Thousand Oaks, CA
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Susan Haughton
Alexandria, VA
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Inna Ivchenko
Encino, CA
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Roy Kelley
Gaithersburg, MD
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Lyn Sims
Schaumburg, IL
5,215,898
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!
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Nina Hollander, Broker
Charlotte, NC
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Roy Kelley
Gaithersburg, MD
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Lyn Sims
Schaumburg, IL
4,882,349
It provides insurance for the lender, very little benefit for the borrower.
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Nina Hollander, Broker
Charlotte, NC
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Michael Jacobs
Pasadena, CA
5,583,278
it only benefits the lender.....
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Nina Hollander, Broker
Charlotte, NC
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Michael Jacobs
Pasadena, CA
5,104,931
PMI benefits the lender, not the borrower. It only costs the borrower.
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Susan Haughton
Alexandria, VA
3,727,873
3,986,258
1,844,171
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.
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Nina Hollander, Broker
Charlotte, NC
3,988,007
PMI benefits the investor and lender. It costs the borrower money up-front, monthly or both.
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Nina Hollander, Broker
Charlotte, NC
1,076,531
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.
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Susan Haughton
Alexandria, VA
1,712,676
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.
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Susan Haughton
Alexandria, VA
1,502,858
4,935,556
2,178,433
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.
4,434,127
3,416,038
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
3,071,489
1,622,432
I'm sure it is somewhere there hiding...:) I'd suggest to read fine print very carefully.
6,392,899
I suspect that it is mainly just a way for lenders to charge a little extra.
1,157,785
You would need to read the mortgage insurance contract in order to determine the benefits.
3,344,906
5,229,306
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.
2,684,009
4,272,548
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....
4,319,419
Seana Johnson - let the buyer decide what is the ultimate cost to them.
7,835,266
711,752
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.
2,224,473
5,048,718
417,071
Mortgage insurance ONLY covers the lender. Generally cheaper to do an 80 10+10+
4,800,082
Mortgage insurance is a benefit for the lender should the borrower default.
4,571,781
1,466,207
Seana Johnson PMi protects the lender in the event the borrower defaults.