I'm Doug, and I'm sorry to hear of the confusion. My goal is to provide you with excellent service today.
Mortgage insurance is generally required for conventional mortgage loans if you are no paying at least 20% of the purchase price as a down payment. So, if the loan to value ration of the purchase is below 80% many lenders will not require that you pay mortgage insurance.
Paying the closing costs of $10,000 at the time of the closing, as opposed to rolling them into the mortgage will generally save you about $400 a year in additional interest payments.
Agreeing to pay for mortgage insurance will not qualify you to borrow any more money (it is your present income and debts that determine how much you can borrow)---but it will allow you to borrow more than 80% of the value of the home you are buying so you don't have to put 20% as a down payment.
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I wish you and yours the best in 2016,