Question by Sandee: Why does the Government keep saying we are able to refinance our homes at a low rate of interest, when they?
have raised the FHA– PMI (mortgage insurance) up so high that the cost of it offsets any advantage to refinancing?
Answer by Art Vandelay
Because some people are still not making the payments, so the losses have to be spread out over the other customers. Very similar to a home insurer; if they have big losses due to a natural disaster, the rates go up on everyone else to offset that cost.
Know better? Leave your own answer in the comments!