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Lender Mortgage Insurance
Claude Said:
Why isn't PMI (Personal Mortgage Insurance), ever mentioned in the lender fiasco? Are banks collecting twice?We Answered:
Good question. Just remember when you borrow you are asking someone to trust that you will repay. The lender is exposed to risk. Insurance is usually only required when you put down either a low or no down payment. Otherwise the value of the house is colateral. Beef up your down payment and insuance should not be required.