I don’t understand how making me pay an extra 500$ a month makes me MORE likely to not default on my loan. I live in Southern California and to put 10% down on a house it costs like 170k at least. Anyways I’d love to know why it’s mandatory I pay PMI.
In: 0
>Anyways I’d love to know why it’s mandatory I pay PMI.
Echoing everyone else here; but the additional kicker is – if PMI didn’t exist, borrowers who put 10% down would be required to:
1. Put 20% down; or
2. Be offered a loan with a (significantly?) higher interest rate to compensate for the increased risk; or
3. Not be offered a loan at all
Latest Answers