Mortgage Payment Protection Insurance

[TUalum0982]

quote:Originally posted by BierGarten

This thread is a little bit confusing because people are talking about two different things.

PMI -- Private mortgage insurance is what every lender requires that you pay -- every month -- until your loan to equity (or loan to valuu -- depending on what the contract you signed says, you may be able to reappraise and get rid of PMI) is 80/20.  Meaning, if you borrowed $95,000 on a $100,000 home (i.e. made a 5% down payment) you would pay PMI until the loan principle became $80,000.  By the way, if you do an amortization table for that exact loan, you will see that you wouldn't get the principle down to $80,000 for a LONG time.

Mortgage Payment Insurance -- This is the stuff you get mailers about every once in a while from random insurance companies or credit card companies that, if you purchase it, will cover your monthly mortgage payments if you were to be disabled, unemployed or die.

So, PMI isn't something you have the option of "investing in".  You either have to pay it or you don't.  Mortgage Payment Insurance is an investment decision, and I am sure that there any many different views on whether its a good investment or not.  Personally, I would say having an emergency fund, if you can sock one away, would be much more fiscally prudent.

you can buy out your PMI if your credit score is high enough.  We financed our home with no PMI.  We simply had credit scores of 735 and paid 2500 in discount points to "buy it out".  I would much rather pay 2500 up front then pay 180 dollars extra each month (which is what it would have been) till we had 20% equity in our home.  There are ways around it.  Until this "house crisis" you could get an 80% loan and then piggyback a 20% loan for a somewhat higher interest rate.  Anymore though, they dont offer this because of all the foreclosures that are happening.

I was curious about these advertisements as well since we just purchased our first home a month ago and I have received several in the mail.  

[Double A]

quote:Originally posted by TUalum0982

quote:Originally posted by BierGarten

This thread is a little bit confusing because people are talking about two different things.

PMI -- Private mortgage insurance is what every lender requires that you pay -- every month -- until your loan to equity (or loan to valuu -- depending on what the contract you signed says, you may be able to reappraise and get rid of PMI) is 80/20.  Meaning, if you borrowed $95,000 on a $100,000 home (i.e. made a 5% down payment) you would pay PMI until the loan principle became $80,000.  By the way, if you do an amortization table for that exact loan, you will see that you wouldn't get the principle down to $80,000 for a LONG time.

Mortgage Payment Insurance -- This is the stuff you get mailers about every once in a while from random insurance companies or credit card companies that, if you purchase it, will cover your monthly mortgage payments if you were to be disabled, unemployed or die.

So, PMI isn't something you have the option of "investing in".  You either have to pay it or you don't.  Mortgage Payment Insurance is an investment decision, and I am sure that there any many different views on whether its a good investment or not.  Personally, I would say having an emergency fund, if you can sock one away, would be much more fiscally prudent.

you can buy out your PMI if your credit score is high enough.  We financed our home with no PMI.  We simply had credit scores of 735 and paid 2500 in discount points to "buy it out".  I would much rather pay 2500 up front then pay 180 dollars extra each month (which is what it would have been) till we had 20% equity in our home.  There are ways around it.  Until this "house crisis" you could get an 80% loan and then piggyback a 20% loan for a somewhat higher interest rate.  Anymore though, they dont offer this because of all the foreclosures that are happening.

I was curious about these advertisements as well since we just purchased our first home a month ago and I have received several in the mail.  

MPPI's, not PMI's.

[Flora D]

Here's a site that may be very helpful with the information you need regarding mortgage protection. It also offers a job that can allow you to work at home:

hope this can help you.
go to:

This website had no information on mortgage protection, it was simply an online website with information on how to make money marketing mortgage protection.  You may PM the poster if you desire this information but the link has been removed.

TulsaNow is a forum for discussion, not gaining hits for your website.  New users are viewed with particular suspicion and I found no merit to that site.  Sorry if you feel this policy is harsh.

- Moderator

[Gaspar]

quote:Originally posted by Double A

Is it a scam or a worthwhile investment?

I simply use this test:

Does it have the word "INSURANCE" in it?

If the answer is yes, than there is an 80% chance it is a scam.

Sorry, I just had a very very hard time with an insurance company last month.

[Ibanez]

quote:Originally posted by Flora D

Here's a site that may be very helpful with the information you need regarding mortgage protection. It also offers a job that can allow you to work at home:


go to:
deleted

hope this can help you.

Great! Tell me more! Does it come with a set of Ginsu knives?