I hate PMI.
Posted by eemilla on February 20, 2009
I recently filled our taxes, and I was reminded about the tax deduction for PMI payments that we don’t qualify for because we purchased our house a year or so too early. I hate Private Mortgage Insurance. Especially in light of this economic meltdown, I am so angry that we have to pay this insurance to protect our mortgage company (which by the way was bought out by a larger bank that has now received bailout funds because they allowed even shadier folks than us to get loans without PMI) against our shady, risky selves, and before this mortgage meltdown I understood why the banks would want to protect themselves from borrowers who didn’t meet all of their underwriting guidelines. Now that all of these sub-prime loans have gone belly up, why isn’t PMI saving the day? One source says because not all sub-prime loans were required to carry it. Well, I don’t want to carry it either! Since we have to carry it, can’t we at least deduct its cost from our taxable income?
We got an appraisal after the two year mark, but we hadn’t appreciated enough to get rid of PMI. We have been making improvements, and we will continue to make more as we are able squeeze extra money out of the budget. However, with the housing prices staying steady or falling it looks like we will be stuck paying PMI until this mess is over. I was hoping Tuesday’s announcement might offer some good news for our household, but it doesn’t seem so.
On the bright side, I love this house and my neighborhood. I just wish my PMI payments were knocking the principal down or being socked away to rip up this carpet.