Mortgage Insurance Premium

A FHA loan fee is a one-time charge, paid at the time of closing. The mortgage insurance premium assists in providing protection to lenders if for some reason you were not able to make your monthly payments on schedule. This type of protection will help them keep their rates stable and affordable even when something may happen that doesn't work out as planned with your new home purchase!

The FHA loan required a guaranteed fee that was paid in addition to the closing costs.