ickplant@lemmy.world to Lemmy Shitpost@lemmy.world · 12 days agoA conundrumlemmy.worldimagemessage-square181fedilinkarrow-up11.31Karrow-down114
arrow-up11.29Karrow-down1imageA conundrumlemmy.worldickplant@lemmy.world to Lemmy Shitpost@lemmy.world · 12 days agomessage-square181fedilink
minus-squarebrognak@lemmy.dbzer0.comlinkfedilinkarrow-up10·12 days agoPart of interest calculation is risk. That’s why higher credit score leads to lower interest, it’s less of a risk to the lender. PMI is double dipping. They can pick one, either a flat across the board interest rate for all borrowers or PMI. Didn’t mean to imply it was entirely about risk.
minus-squarenull_dot@lemmy.dbzer0.comlinkfedilinkEnglisharrow-up1arrow-down4·11 days agoThe financial illiteracy of lemmy users always amazes me. PMI is not double dipping. It keeps the risk reasonable so that interest rates can remain reasonable. With no PMI there’s extra risk that would need to be priced in to interest. No one likes PMI, but it’s not evil.
Part of interest calculation is risk. That’s why higher credit score leads to lower interest, it’s less of a risk to the lender.
PMI is double dipping. They can pick one, either a flat across the board interest rate for all borrowers or PMI.
Didn’t mean to imply it was entirely about risk.
The financial illiteracy of lemmy users always amazes me.
PMI is not double dipping.
It keeps the risk reasonable so that interest rates can remain reasonable.
With no PMI there’s extra risk that would need to be priced in to interest.
No one likes PMI, but it’s not evil.