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

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    @mjarz02 wrote:

    @Golden FE Ranger wrote:

    @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:

    That sucks. I can’t imagine being in that situation. I am such a cheap :censored: , I could not deal with it. The thought of paying insurance for another’s risk just baffles me. Though when I think about it, it may be a good thing. I would guess that if it were not for mortgage insurance, the banks would just tweak rates up to make up the difference. Parise knows the banks aren’t going to loss a penny. Those that don’t need the insurance may somehow benefit in the rates or fees by the banks getting a little more skin out of those that do.

    I was able to find a loan through Minnesota Housing that eliminated Mortgage insurance, my interest rate was a touch higher with this loan, but the difference was a savings of 100$ per month. We mentioned to our mortgage guy that if we put down 20%, would that remove mortgage insurance and he said “no, you pay mortgage insurance until 80% of the home is paid off”. Well when the vast majority of your payment is going towards the interest, that 80% is a longtime.

    IMO, the banks used the housing crisis to justify mortgage insurance. However, they don’t need it to turn a profit, only to increase their profits. That’s why they have the biggest buildings and can purchase naming rights to the biggest stadiums.

    I really don’t “own” my home, just renting it until I’m 60 years old and have paid the bank almost double what its worth :dance:

    You won’t “own” it at 60 either, try not paying your property taxes!