Back in August I had suggested that borrowers re-think the use of Private Mortgage Insurance (PMI) as they consider different home financing options. I pointed out that since PMI is tax-deductible for all purchases made in 2007 it is worth the consideration. Also with the demise of the 2nd lien market those fancy 80/20 and 80/15 loans aren’t as readily available anymore, so PMI could be the only option in many cases.

Looks like lots and lots of consumers read my post from August because the number of borrowers using PMI jumped 15.2%. According to PrivateMI.com:

Mortgage Insurance Companies of America (MICA) reports that 197,169 borrowers used private mortgage insurance (PrivateMI) to buy or refinance a home in August. The number of borrowers using PrivateMI in August was 15.2% higher than the July total of 171,186.

For all the years the mortgage insurance industry took a beating it’s making a strong comeback. At least for today PMI wins its battle with 2nd lien’s.

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Tags: private mortage insurance, second mortgages
Categories: Mortgage Insurance, Mortgages, Real Estate