Thanks, Obama! (for reals tho)

[puniraptor]

PMI rates should be based upon the risk of default. They should not be based upon idiotic political stunts to save first time home buyers and zero equity buyers $3 a month.

but they mostly aren't.  the vast majority of people don't shop for pmi, they just accept whoever the mortgage issuer or servicer "recommends".  it's a ridiculously profitable industry.

just read on the subject a little more and found out that no one shops for pmi.  the lender selects, the borrower pays.  what a joke.

is the pmi rate fixed by some law or policy or something?

[Dugout DickStone]

How will this effect my investment properties?  Make it short please.

[john "teach me how to" dougie]

As someone who was poor when buying my first house in 2006 it was incredibly easy.   I'm closing on a house on Tuesday and the process has been 10 times more difficult because of new Fed regulations.

It never should have been that easy. It was OK if you were a responsible person, but it was all fun and games for the irresponsible.

[sys]

is the pmi rate fixed by some law or policy or something?

no, just through COLUSION and the lack of market forces.

[Fake Sugar Dick (WARNING, NOT THE REAL SUGAR DICK!)]

PMI rates should be based upon the risk of default. They should not be based upon idiotic political stunts to save first time home buyers and zero equity buyers $3 a month.

but they mostly aren't.  the vast majority of people don't shop for pmi, they just accept whoever the mortgage issuer or servicer "recommends".  it's a ridiculously profitable industry.

just read on the subject a little more and found out that no one shops for pmi.  the lender selects, the borrower pays.  what a joke.

I know, totally absurd. The rate also doesn't go down as you build equity in the house (until you have 78% ltv, then it vanishes).

[Headinjun]

As someone who was poor when buying my first house in 2006 it was incredibly easy.   I'm closing on a house on Tuesday and the process has been 10 times more difficult because of new Fed regulations.

It never should have been that easy. It was OK if you were a responsible person, but it was all fun and games for the irresponsible.

As in irresponsible you mean the sub prime lenders and the investmet banks offering CDOs right?

[Dugout DickStone]

I don't get the "poors should be allowed at college" quip. Is community college only for poors or something?  Is it expensive?  I've never been to community college, but I'm guessing it's easier than high school.

??

[Fake Sugar Dick (WARNING, NOT THE REAL SUGAR DICK!)]

Fixed

[john "teach me how to" dougie]

As someone who was poor when buying my first house in 2006 it was incredibly easy.   I'm closing on a house on Tuesday and the process has been 10 times more difficult because of new Fed regulations.

It never should have been that easy. It was OK if you were a responsible person, but it was all fun and games for the irresponsible.

As in irresponsible you mean the sub prime lenders and the investmet banks offering CDOs right?

To some extent, yes. But it does boil down to people accepting these loans that knew were too good to be true and believing they could buy a home that is way out of their price range. Most believed they would get into the house, then turn around and sell it before the higher interest rate kicked in and be rolling in the dough.

There also had to be someone there to buy these bad loans, and that was fannie and freddy, our gov.

[wetwillie]

The 30 yr mortgage with pmi is pretty gross.   Just seems like a poor financial decision in a lot of ways.

[sys]

The 30 yr mortgage with pmi is pretty gross.   Just seems like a poor financial decision in a lot of ways.

do you mean from the point of view of the lender?  because for the borrower it's a ridiculously great opportunity.

[Headinjun]

As someone who was poor when buying my first house in 2006 it was incredibly easy.   I'm closing on a house on Tuesday and the process has been 10 times more difficult because of new Fed regulations.

It never should have been that easy. It was OK if you were a responsible person, but it was all fun and games for the irresponsible.

As in irresponsible you mean the sub prime lenders and the investmet banks offering CDOs right?

To some extent, yes. But it does boil down to people accepting these loans that knew were too good to be true and believing they could buy a home that is way out of their price range. Most believed they would get into the house, then turn around and sell it before the higher interest rate kicked in and be rolling in the dough.

There also had to be someone there to buy these bad loans, and that was fannie and freddy, our gov.

Bear Stearns and Lehman brothers bought the majority of these loans.   

[CNS]

Yeah, I bought a house at 23 w nothing down on a 30 yr note.  Worked out super good so far.

[wetwillie]

The 30 yr mortgage with pmi is pretty gross.   Just seems like a poor financial decision in a lot of ways.

do you mean from the point of view of the lender?  because for the borrower it's a ridiculously great opportunity.

I meant as a borrower. 

[sys]

well then, you're wrong.  it's an amazing opportunity for borrowers.  there's pretty much no other deal like it the whole world.

[mocat]

Yeah, I bought a house at 23 w nothing down on a 30 yr note.  Worked out super good so far.

this is what i'm talking about