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

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Golden FE RangerGolden FE Ranger
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@mjarz02 wrote:

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:

That seems strange, though I am certainly far from well informed when it comes to loans. We put down just over 20% when we bought our most recent home 5 years ago and pay no MI. We just went with WF and when we told the banker we planned to put down the 20%, he was about ready to give us the bag of cash on the spot.