Washington Mutual also says it will cut the rate to the 20 percent down level whenever the loan balance is amortized down to 80 percent of the home's purchase value. If appreciation pushes your equity to 25 percent or higher Washington Mutual says it will also cut your interest rate. Both cancellation features are similar to provisions in the new PMI reform law, but the loan and other methods of financing PMI payments raise serious questions. PMI has been a volatile consumer issue for years. The federal PMI reform law goes a long way toward addressing some of the abuses and answering some of the questions.
Some questions remain.
Likewise, consumers must remain vigilant and press lenders and the PMI industry about those questions. Written by Broderick Perkins Click here for a printer-friendly version of this article. Click here to translate this page to another language. Click here to e-mail this article to a friend. All Rights Reserved.