Real Estate Group Blog for Hampton Roads, Williamsburg & N. Carolina - Blog Archive: January, 2013

Real Estate Group Blog for Hampton Roads, Williamsburg & N. Carolina. Keep up on all the latest happenings and local market information.

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January 2013

There are 1 blog entries for January 2013.

This is a guest blog post by Regional Home Mortgage

So what is mortgage insurance? Unfortunately, mortgage insurance is a necessary evil unless you’re making a 20% down payment on a conventional loan.

The mortgage insurance on an FHA loan is by far the most expensive mortgage insurance on the market because borrowers must pay both an up-front mortgage insurance premium and a monthly mortgage insurance premium; this is otherwise known as a split premium. The up-front mortgage insurance premium is financed into the loan so it’s not an out-of-pocket expense, but it is a cost that borrowers incur nonetheless. Also, borrowers cannot get around paying the mortgage insurance on an FHA loan regardless of the down payment, whether it’s 5%, 20%, or more.

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