DEAR BOB: I refinanced my condo last week. At the closing, I was informed by the lender that FHA requires PMI (private mortgage insurance) although I have 29 percent equity. Is there anything I can do to save the PMI monthly cost? The lender told me I am required to have it. But that sounds fishy. What recourse do I have? – Pandora M.

DEAR PANDORA: Please don't confuse FHA's required MIP (mortgage insurance premium) with PMI (private mortgage insurance), which conventional mortgage lenders usually require when the homeowner has less than 20 percent equity.  more...