How The Demise of Second Mortgages Is Bringing PMI Back In Vogue

Suddenly, Private Mortgage Insurance is back in vogue. If only by default. Since 2002, many homeowners have financed a portion of their homes using second mortgages. It wasn't well-publicized, but these "piggyback" loans that helped people finance 85%, 90%, 95% or 100% of their home's value were really sub-prime loans, reflecting the greater risk in lending over 80% on a home's value. With the demise of sub-prime lending, so went many lending sources for home equity loans. As mortgage guidelines...