End mandatory mortgage insurance

Economy
1

We need to remove mandatory mortgage insurance , home insurance are too expensive and they don’t want pay any money when you need it

1 Like
2

Or at least have a policy that only covers the mortgage, and liability.

1 Like
3

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.

1 Like
4

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.

5

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.

6

You should check with your lender. Once you reach the 80% Loan to Value threshold, your PMI is supposed to be dropped.