VA the Fairway - Lacey

It depends on the type of loan - VA Borrowers without a 'Service Connected Disability' are required to pay a funding fee based on loan amount which is then added to the total loan amount. All FHA loans incur an Upfront Mortgage Insurance Premium of 1.75% of the loan amount which is then added to the total loan balance and is included in monthly payments and often called a ‘funding fee’. Conventional loans never carry a ‘funding fee’. USDA loans require an upfront Guarantee Fee based on loan amount.

PMI – aka Private Mortgage Insurance is a type of mortgage insurance you may be required to pay if you have a conventional loan. There are many types of PMI, including monthly, up-front and a combination of both commonly referred to as split MI.

Whether your rate can change or not depends on the type of loan you have. The most common type of home loan is a 30 year fixed mortgage, in which your rate will never change for the life of the loan. There are also adjustable rate mortgages (ARMs), interest only mortgages (IO) and other types of loans that may have changing interest rates.

It is possible to achieve lower monthly payments by combining competitive interest rates with the advantage of having no private mortgage insurance added to the mortgage payment.