Gwen S asked:


I have had a home loan with wells fargo for 2 years and I need to refinance. I did not have this insurance the first time and now they want to add it.

ROMEO

2 Responses to “what is pmi/mip insurance on a home morgage?”

1. ondreforsure on November 7th, 2009 10:15 am

   ALBERTO

   PMI or Private Mortgage Insurance is normally required when you buy a house with less than 20% down. Mortgage insurance is a type of guarantee that helps protect lenders against the costs of foreclosure. This insurance protection is provided by private mortgage-insurance companies. It enables lenders to accept lower down payments than they would normally accept. In effect, mortgage insurance provides what the equity of a higher down payment would provide to cover a lender’s losses in the unfortunate event of foreclosure.

   Since PMI is not a tax deductible expense you may want to consider financing the down payment or having the lender pay for your Mortgage Insurance (Lender Paid Mortgage insurance known as LPMI).

2. Joe on November 10th, 2009 5:05 am

   RODERICK

   It goes to the pimp.

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