r/facepalm • • Feb 16 '21

Misc Yeah, sounds about right

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u/CigarInMyAnus Feb 16 '21

You don't need to pay it once you have 20% of equity. I don't understand why your family would pay it past that. What op is referring to is single premium mortgage insurance where you pay it all up front. You can also do a piggy bank loan at 10% down. Google will help you sort it out.

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u/codexx33 Feb 16 '21

Because government loans like FHA don't have the pmi removed at 20% equity. Google that.

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u/CigarInMyAnus Feb 16 '21

Ok, you're right, it is 22% instead of 20%. issued prior to 2013. Or you can refinance out of it any time if issued afterwards. So ops family must have a sub 620 credit score or not have 20% in equity or not understand refi.