Re: PMI insurance dropped, loss of Gremlin Garage...not!

[Gremlingts@xxxx]

<< > I got to drop the PMI 
> payment (Mortgage Insurance, basically ), 

> Jerry,
> Bad idea!!! Mortgage insurance has been a blessing to a couple of my 
friends 
>who's spouses met with untimely ends. (it does happen you know)

No, the PMI is for the benefit of the LOANER, not the LOANEE. The 
Mortgage holder is guaranteed that the loan will be paid, or that there is 
sufficient equity in the house to pay off the loan, should the purchaser drop 
dead, etc. Similar in concept to buying a new car, where you have to keep 
full coverage on the car, not just Liability, so that in case of an accident, 
the BANK gets paid if you total the car and you're killed and can't pay any 
more of the loan. It doesn't benefit ME or my wife any, just the Loan company 
or bank. My home shot up in value, from 142k to around 190k, in just 3 years! 
So, there was sufficent equity in the property now, that the value of the 
remaining loan will be covered if they have to repossess the house for any 
reason, and resell it. Remember, insurance is not always beneficial to the 
holder! I have other insurance to ensure that the house will be paid for if I 
die. It's called a Term Life policy. That clear things up for ya?

Jerry in Virginia