Has anybody dealt with Financed Mortgage Insurance?

Burt Cheevers: If a bank was to finance mortgage insurance as part of the the mortgage loan, that would mean you would get less money to finance the home. That is because a bank will usually only finance a certain percentage of the appraised value of a home.Example:Appraised Value: $300,000Financing: 90%Total Financing $270,000If there is $8,000 worth of mortgage insurance to be financed, only $262,000 would remain to finance the home.Your calculations seem to be wrong. First there is an interest rate difference of about 1.2% between the two calculations and the difference should only be about .5% since PMI usually costs .5%.So using the assumption that the Financed Mortgage Insurance is $6,000 and the PMI is .5%, then the savings per month is about $45. However, I suspect the financed mortgage insurance is greater than $6,000 reducing the savings further.Finally I'm not sure how much economic sense it would make to finance mortgage insurance since once your home reaches ! a Loan-to-Value (LTV) of 80%, the PMI charges on the loan can be removed. If you financed mortgage insurance, that amount has to be paid whether you refinance, sell the home, or complete the term of the loan....Show more