We need to remove mandatory mortgage insurance , home insurance are too expensive and they don’t want pay any money when you need it
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Or at least have a policy that only covers the mortgage, and liability.
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You can refinance to conventional soon after you get the mortgage. It could be a worthwhile endeavor I guess but, I’m not sure why go down this path when congress has far larger issues to solve.
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I would like to see the mortgage companies have to drop PMI upon request and with current appraisal without refinancing. There are so many fees that get racked up in the refi process and you lose your interest rate! I have a 3.5% interest rate but am still paying $150/mo in PMI WITH 50% equity in my home. I should not have to prequalify and refinance to remove that $150 PMI payment.
Mortgage insurance is not mandatory. It is a function of the risk of your defaulting on the loan. If you take out a FHA loan, then your agreement with FHA does require you to pay for mortgage insurance in case you default. If you get a conventional mortgage, then you are not required to pay for mortgage insurance.
You should check with your lender. Once you reach the 80% Loan to Value threshold, your PMI is supposed to be dropped.
We go ‘down this path’ because it is IMPORTANT. A Congress that has so much time off–(and even when they are supposedly working, rarely even show up to be in chambers to vote!) has PLENTY of time to take up this issue which affects ALL Americans. Insurance should be OPTIONAL to keep it competitive. The ONLY Insurance which should be MANDATORY is what is required to repay the Mortgage company for what is still owed on the property–not the part that has already been paid off. THAT is a reasonable compromise. Same with our cars. Liability should be mandatory to protect other people and their property, but optional for the owner themselves. It should be up to the homeowner whether or not they wish to pay insurance for the part of the home they have already paid off. This would make Insurace far more competitive and drive prices down, Same with cars. It should be up to us whether or not we want to keep our cars insured beyond what is still owed for them.
If you refinance–go through a credit union. You will fare MUCH better.
I have to refinance to get it off