by
Benjamin J, Santa Monica
05/16/2006
I am trying to buy a new home and the
mortgage company have inserted a condition
that requires me to purchase PMI. Can they
force me to purchase insurance, is it legal
?
Dear Benjamin
Private Mortgage Insurance (PMI) is normally
required when you are trying to purchase a
home with less than a 20% deposit. The
insurance protects the lender against the
cost of foreclosure should you fail to make
the payments on the loan. It is legal.
Carl Hampton.
