Hello,
May I ask a question?
As I understand PMI's are rarely used now... 80/10 loans are used.
But suppose I preferred a PMI?
Here is the scenario and then I have a question.
As I understand, the market is cooling (an agent I know says it is now
picking up again with some
multiple offers coming it... but allow me to assume, for this argument,
that
that is a blip)...
So the market is cooling... And I wish to bid low on a place.
Even then, I think it is overpriced... and I fear the impact of a health
pandemic, the Saudi's basing oil
on the Euro or a host of other things (my choice to be paranoid... if you
wish to ridicule, please do not:
it would be rude and not nice and also stupid).
Let us assume that an economic meltdown is comnig.
In that case, I would prefer to walk away from the Mortgage completely
(wife
is a foreigner and I could
easily leave).
So I would want to put 0 down on the place.
But I want to fulfil my obligations... I would want a PMI to cover myself
so
that I CAN put 0 down.
But I was told that even with a PMI, that does not insure ME, it insures
the
bank.
And the bank could still scar my record if they lose.
So... are there any cases where it is advisable to actually go out and
insure myself for the loan so I CAN
walk away in ONLY the case where there is a complete economic catastrophe?
(this way, I could keep the 100K liquid that we have in Norwegian banks
and
which is stable and the
bank is happy)
How could one insure ONESELF?
Thanks
T.
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