PMI: Friend or foe?
You know that annoying surcharge on your mortgage bill labeled as PMI? Well, if you're one of thousands of homeowners in dire financial straits, that little annoyance may end up saving your home.
Private Mortgage Insurance, or PMI, is required by lenders when a home buyer has less than twenty percent equity in their property. The only ways to get the PMI charge removed from your payments is either to pay down your loan to less than eighty percent of its original value, or to pay to have your house reappraised, and show it's worth at least twenty percent more than you currently owe.
While most of us can't wait for the day we can stop paying PMI, which seems to be more good money after bad, one mortgage company - Genworth Financial - recently disclosed that PMI helped keep more than 11,000 of their clients in their homes when foreclosure was looming in the past year. Read More.
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