Private Mortgage Insurance is normally forced on home buyer when they are putting a down payment of less than 20%.  With the financial melt down beginning with the housing crisis banks are looking for more security when giving out mortgages to there customers.  It is pretty ridiculous when you think about it.  These same banks were giving out loans to people with sub par credit and terrible income to debt ratios a few years ago.  Its bad enough the buyers have to pay the mortgage, property taxes (in Some States), and High insurance rates, now banks want to add on private mortgage insurance to the pot.

It is becoming down right expensive to own a house in the United States.  What use to be part of the American dream as become a money pit for many home owners who see themelves facing larger bills than expected.  This in turn will soon affect that rental market as wel.  As home buyers get passed these enormous fees they in turn pass those fees onto the renters.  What happend to the great days of prosperity?  The days where a home was the greatest investment you will ever make?  If Banks get there way private mortgage insurance or PMI will be forced upon every home buyer before any loan is able to be obtained. The best Private Mortgage insurance is no insurance at all.