Another post about buying a home and how much of a ripoff PMI is made me think.
Where is all this PMI when you need it. Shouldn't the billions of dollars spent in PMI be preventing this (so called) mortgage crisis right now?
Which makes me think of the first house I bought and about how I told the mortgage lender "oh, I don't need PMI, my job is very secure, that's one insurance that I really don't need." I'm very surprised, looking back now that she didn't laugh at me. But REALLY - why would you in the real word, buy insurance that protects someone else. The insurance that you buy should be in case YOU have to default on the loan, and should protect the person who pays it. I guess though, that if it did, people would be more prone to defaulting and letting insurance cover it.
But still - I don't see how all of the money paid into PMI by so many people over so many years, hasn't protected banks during this small(ish) "crisis."
Where is all this PMI when you need it. Shouldn't the billions of dollars spent in PMI be preventing this (so called) mortgage crisis right now?
Which makes me think of the first house I bought and about how I told the mortgage lender "oh, I don't need PMI, my job is very secure, that's one insurance that I really don't need." I'm very surprised, looking back now that she didn't laugh at me. But REALLY - why would you in the real word, buy insurance that protects someone else. The insurance that you buy should be in case YOU have to default on the loan, and should protect the person who pays it. I guess though, that if it did, people would be more prone to defaulting and letting insurance cover it.
But still - I don't see how all of the money paid into PMI by so many people over so many years, hasn't protected banks during this small(ish) "crisis."