PMI insurance

[BenLuby]

Interesting point brought up today during lunch. The topic of purchases and reifnances, and the fact that we all seem to be buried alive in work, but one interesting fact.
Everybody wants top dollar, but no one wants to pay their PMI.
Is it possible that this is the real reason so many people are trying to push their values?
They want top dollar, but no PMI?
How do you think this enters the equation people wanting to force numbers?
Add that to the Nehemiah program and the others, it gets a bit of a sticky wicket.
Maybe PMI should be based on credit scores instead of solely how much money someone puts down. Any opinions?

And, this is not my idea. My mentor brought it up, and it is, I think, a good one.

 

[Mike Garrett RAA]

And, pray tell, would you want to do that? Yeah, lets cut out another source of appraisal work!

 

[BenLuby]

Mike,
I was not stating the fact that it should be cut. I misworded the statement. What I meant was that if someone wants to remove PMI, then get an appraisal for it.
Don't try to borrow all your equity out and then expect the appraiser to magically increase the value another 20% so you don't get stuck with PMI.
My comment was that most homeowners simply have no idea that their house is not worth that much more money. They want all their equity, but none of the responsibility that goes with it.
I thought a house was a future thing, not a site built piggy bank.

 

[Mike Garrett RAA]

I get 3 or 4 pmi assignments a month.. BE QUIET!!!

 

[BenLuby]

Good. Seems that you have some smart homeowners. Hopefully, the work will only increase for you.

 

[Restrain]

Given that the lenders don't want to give up the PMI payment indicates that they are getting something off of the money (holding interest, kickbacks, etc) so they're not going to use an easy way to drop PMI. Remember, PMI is just more money in the lender's pocket.