Mortgage Insurance - a good thing?

Good argument - but I failed to read in Inman's article the benefits of mortgage insurance.  Instead of "pushing products" onto customers, loan originators/ officers really should give consumers their mortgage options, to include borrower paid mortgage insurance, lender paid mortgage insurance or the 80/20 combo loans.

Kaushik....  In regards to mortgage insurance and the write off?  It does bridge the gap for some homeowners than once before... meaning, there could be some savings.  But I still would need more information. Example... different loan amounts will give results. Sorry if this isn't the best answer. I just haven't had much experience in giving scenarios on the advantages and disadvantages. 

Several reasons, I am starting to do more FHA loans. Still doing some sub prime loans... and the conventional loans that I am doing, are 100% financing. If I had to weigh the pluses and minuses, I would say that it's not as much as an advantage than it sounded. It gets me back to one major point, GOALS. Knowing how long someone is going to be in the house will help me determine which option is better for that specific client. Here are some examples in  a blog that I once wrote:PMI (Private Mortgage Insurance); why you need it and the different types of PMI……  This should give a better explanation.

 And thanks for the mention, it's much appreciative.

Dear Kaushik,

Good point here, well let me tell you something that I think, hm...  community programs with lenders they are accepting the 100% these days, so it is up to them to give all those programs. but those lenders are very strict to check appraisals so they will know that it will not be any problem later on.

thanks for bringing it up :)  good job !!!

Ray, first this is just a pilot program that is why it is only for 2007.

Second, for the writer of the article to suggest that people are going to put down less money so that they can get a bigger tax deduction is crazy.  People don't want to pay PMI, but if they have to this gives them a little help.

I like the deduction and hope that it continues. 

George, thanks for expand the information :)

Kaushik, the only explanation that I have gotten on why only 2007, was that the Bill was not going to pass if it wasn't done this way.  The Republicans wanted to make it permanent and the Democrats wanted to see how it would work first before they made it permanent.