"Property insurance"? What's that? Homeowners vs. mortgage? Mortgage insurance is a non factor when you've paid 20% of the equity. Usually goes away after about 3 or 4 years of making payments. Homeowners (fire/flood/earthquake/major system) insurance is nearing impossible to even get in many cases in states like Florida or California. C…
"Property insurance"? What's that? Homeowners vs. mortgage? Mortgage insurance is a non factor when you've paid 20% of the equity. Usually goes away after about 3 or 4 years of making payments. Homeowners (fire/flood/earthquake/major system) insurance is nearing impossible to even get in many cases in states like Florida or California. Care to research the actual prices of that?
Not saying they'll even pay out half the time, but if you need it, it's not cheap and getting worse...for a reason. I seriously doubt you even live in the US, or if you do you're a trust fund brat with a financial affairs manager.
You don't know what the hell you are talking about. PMI doesn't go away in 3-4 years if you put down 20% equity. If you put down 20% equity, you didn't have PMI in the first place. I'm sure there are localities where homeowner's insurance is difficult to obtain at a reasonable rate due to changes in insurance loss rates, state insurance commission policy changes etc., but nationwide homeowner's insurance rates are mostly up due to inflation in (re)building costs.
Nobody said anything about "putting down" any percentage you idiot. I said once you've got roughly 20% of the equity paid off the mortgage insurance comes off the payment, or is no longer required. Now, if in your state or whatever jurisdiction you're in you can pay a certain percentage amount down (up to and including the whole cash price, duh) - which would not surprise me - then perhaps you can obviate the need for mortgage insurance altogether.
No mortgage insurance is not the same thing as property insurance which covers damage and replacement costs. In Texas the cost of insurance on a $580,000. property is $3,500. which is about $291. a month if you add 10% you'll be paying $320. It is very likely that when you add property taxes that the amount you pay into escrow is higher than the amount you pay towards your loan and that is significant no matter what the trolls say. If you want to avoid PMI you can take out a second smaller loan which can be paid back in a more timely fashion but PMI has nothing to do with property insurance that you have to maintain even when you pay cash for the property.
"No mortgage insurance is not the same thing as property insurance".
THANK YOU. There is a lot of confusion in the comments. PMI is imposed by mortgagees. They make you get insurance for the mortgage and the policy is written in favor of the mortgagee - the lender. Homeowners insurance includes not merely the building(s) itself, but also liability to folks on the property. And you can decide how much to cover, deductibles,, etc. Two different things!
"Property insurance"? What's that? Homeowners vs. mortgage? Mortgage insurance is a non factor when you've paid 20% of the equity. Usually goes away after about 3 or 4 years of making payments. Homeowners (fire/flood/earthquake/major system) insurance is nearing impossible to even get in many cases in states like Florida or California. Care to research the actual prices of that?
Not saying they'll even pay out half the time, but if you need it, it's not cheap and getting worse...for a reason. I seriously doubt you even live in the US, or if you do you're a trust fund brat with a financial affairs manager.
You don't know what the hell you are talking about. PMI doesn't go away in 3-4 years if you put down 20% equity. If you put down 20% equity, you didn't have PMI in the first place. I'm sure there are localities where homeowner's insurance is difficult to obtain at a reasonable rate due to changes in insurance loss rates, state insurance commission policy changes etc., but nationwide homeowner's insurance rates are mostly up due to inflation in (re)building costs.
Nobody said anything about "putting down" any percentage you idiot. I said once you've got roughly 20% of the equity paid off the mortgage insurance comes off the payment, or is no longer required. Now, if in your state or whatever jurisdiction you're in you can pay a certain percentage amount down (up to and including the whole cash price, duh) - which would not surprise me - then perhaps you can obviate the need for mortgage insurance altogether.
No mortgage insurance is not the same thing as property insurance which covers damage and replacement costs. In Texas the cost of insurance on a $580,000. property is $3,500. which is about $291. a month if you add 10% you'll be paying $320. It is very likely that when you add property taxes that the amount you pay into escrow is higher than the amount you pay towards your loan and that is significant no matter what the trolls say. If you want to avoid PMI you can take out a second smaller loan which can be paid back in a more timely fashion but PMI has nothing to do with property insurance that you have to maintain even when you pay cash for the property.
"No mortgage insurance is not the same thing as property insurance".
THANK YOU. There is a lot of confusion in the comments. PMI is imposed by mortgagees. They make you get insurance for the mortgage and the policy is written in favor of the mortgagee - the lender. Homeowners insurance includes not merely the building(s) itself, but also liability to folks on the property. And you can decide how much to cover, deductibles,, etc. Two different things!
Being an asshole is compounded when you make ignorant comments. Please stop embarrassing yourself.
he is new here. maybe mom didn't send his breakfast down to the basement yet!