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

#153756 Quote
MaizeMaize
    Up
    0
    Down
    ::

    @mjarz02 wrote:

    What is the need for PMI besides greed?

    It’s not like the mortgage company is making any extra money off of it. The extra fee on your mortgage payment for PMI is the premium on a separate insurance policy the mortgage company takes out in case you default on the loan. You’re asking the mortgage company to take on additional risk by not putting 20% down. It doesn’t seem unreasonable that they’d want the buyer to assume the costs of that risk rather than paying it out of the goodness of their heart.