MA Real Estate Attorneys and Closing Costs

Buyer Closing Costs and FHA Loans

The current FHA financing rate is very low, hovering at around 3.5%, making a buyer's downpayment lower right now. The FHA also places mortgage insurance on loans made by their approved lenders.

The downside to an FHA loan is the fact that the buyer is required to carry Mortgage Insurance Premiums (MIPs) on their loan. This charge is generally factored into the mortgage payments for FHA approved buyers. Adding to the confusion, is the PMI, or Private Mortgage Insurance that is also required whenever a buyer puts down less than a 20% deposit on a real estate purchase. This payment however, does not extend for the life of the loan and will stop being charged once the buyer has paid 20% of the mortgage.

Factors that determine the closing costs are the individual circumstances of the buyer, credit score, type of loan, amount of downpayment, and type of mortgage.


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Crowley & Cummings are real estate attorneys located in Dedham MA specializing in real estate closings, title examinations, complex title issues, purchase & sale agreements, condo conversions, and other related services. They service lenders and mortgage brokers, real estate agents, as well as buyers and sellers in Massachusetts, New England, and throughout the US. To learn more visit them online at www.CrowleyCummings.com.