Portal Forum General General Discussion Home Ownership Reply To: Home Ownership

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@Neat Hat wrote:

@mjarz02 wrote:

Here is my biggest issue with buying a home. Mortgage insurance… This has to be one of the biggest scams around. You are charged a monthly fee because they aren’t confident that you will be able to pay your loan in full. Isn’t that the whole point of interest and having interest be the majority of your payments during the first 15 years? I don’t trust you to pay me 1000 dollars a month, so pay me 1250 dollars instead.

The market isn’t determined by what a person can purchase, but rather what someone can borrow.

Yeah, mortgage insurance is BS. I was forced into a FHA loan, because there were no comparables for my house. I had multiple agents and mortgage people look into it for a year or so, and FHA was my only option. The BS part is, FHA requires mortgage insurance for 10 years, regardless of how much equity I have. It is F’n BS, and it pisses me the f*** off. :chainsaw:

Back before the housing industry collapsed, you could borrow 100% of the value of your home, meaning your mortgage could be 80% of the value and you could do a home equity loan for the last 20%, eliminating mortgage insurance. It was either that or put a 20% down payment. It was easier to do when you could buy a house for under $100k, but nowadays, not many people have $40k-$50k laying around.

My financial advisor also says it is a joke and I was lucky enough to increase the value of my home enough where I paid $400 for an appraisal and eliminated my mortgage insurance. Saved me $80 a month, which paid for the appraisal in 5 months.

I own my 7th home right now and I am very lucky to not to have ever had a FHA loan. I sold 2 houses to people with those and it was a pain in the ass.