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@Neat Hat wrote:
@Golden FE Ranger wrote:
@Neat Hat 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 just try to put it out of my mind, because it bugs me so much. It is idiotic for me to pay FMI when I am at 30% equity. :evil:
Then, they rub it in. About once a year I get a “congratulations!” email because they’ve reduced the amount of FMI I have to pay, which usually amounts to about $4 per month reduction.
So then why don’t you just refi?