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Clodfobble · 04-03-2005, 11:42 PM

Can't people get PMI to cover the mortgage part of the problem?

PMI only applies until you've paid down 20% of the loan. It's just supposed to make sure you've got a "stake" in the house, because they'd really rather not have to repossess a house after a mere year or two.

But if the house is destroyed, and you decide to stop paying the mortgage, there's no collateral for them to repossess.

04-03-2005, 11:42 PM	#6
Clodfobble UNDER CONDITIONAL MITIGATION Join Date: Mar 2004 Location: Austin, TX Posts: 20,012	Can't people get PMI to cover the mortgage part of the problem? PMI only applies until you've paid down 20% of the loan. It's just supposed to make sure you've got a "stake" in the house, because they'd really rather not have to repossess a house after a mere year or two. But if the house is destroyed, and you decide to stop paying the mortgage, there's no collateral for them to repossess.