Why does the Government keep saying we are able to refinance our homes at a low rate of interest, when they?

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?

Best answer:

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.

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