WOW Misnomer of the Day?
The non accredited Financial Guru of CNBC ubber popular personal finance show “On The Money” Carmen Wong Ulrich (CWU) explained in a recent Web Extra: Mortgage Insurance: You Don’t Want It “If you’re a homeowner and you’re paying PMI – or private mortgage insurance – you should know that you probably don’t want it and definitely don’t need it."
Watch the video for more.
-Sorry young Padawan, you are Way off base, you must have missed the memo or fallen asleep in Mortgage PMI 101.
I don’t know what CWU means by a little equity if she is referring to 20% then yes CWU is correct.
Any Conforming loan above 80% LTV will require you to pay PMI. If a borrower is taking an FHA loan they will be required to pay MI even if the LTV is <80% (Note: Years will be determined when the loan balance equals 78%, provided the borrower has paid the annual MIP for at least 5 years (scheduled or actual)).
MI is determined on a risk based method for Fannie and Freddie, FHA has a flat .50% which is soon to change to risk based credit grade. Risk based is calculated by a borrower’s credit and LTV.
As a mortgage planner I don’t know of one lender left that is currently offering LPMI (Lender Paid MI), if you are lucky to find one you pay for it your in interest rate.
There is no way around MI if you have a high LTV Mortgage. A borrower is required to have MI if they would like the Mortgage.
This is why there are accreditations and certifications, to insure erroneous information is not released to the masses.
I am watching you Carmen Wrong on this one Ulrich
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