Had to take the opportunity to re-post the following from The Regan Team. Early on in my real estate walk, I didn't look at PMI as an option- for all intents and purposes, they were the option. Just as there are many colas yet only one is a Coca-cola and there are other issues yet only one kind is a Kleenex.
Others may have differing opinions, but as I see it PMI ranks among the others I've just mentioned- often imitated, never duplicated.
PMI, the private mortgage insurance company that helped millions of people with low down payments purchase a home is no longer in business. As of Friday August 19th they stopped issuing mortgage insurance for those with less than 20% down. Here’s the announcement:
So what does this mean for those with less than 20% down?
Nothing right now; there are other mortgage insurance companies such as MGIC, RMIC, Radian, and Genworth that still provide these services. That being said it’s a trend that should be watched closely; if one of the most popular and biggest private mortgage insurance companies closed its doors, another could be next.
Michael G Regan (NMLS #275695) is a FHA, FHA 203k rehab, and Homepath Specialist in Petaluma California. He works in Marin, Sonoma, and Napa counties. You can reach him at 415-672-2499 or online at www.TheReganTeam.com
Follow me on twitter and become a fan on facebook.
Copyright © 2011 The Regan Team Home Loan Group. All Rights Reserved.