OCALA, FL (352today.com) – Think about every mortgage payment you have made in your life. You have spent thirty years putting money into a container you cannot open. Her $1,000 reduces the loan balance, and it restores that same $1,000 as available credit, which then continues to grow and compound on a tax-free basis. There is an origination fee, an FHA mortgage insurance premium both upfront and ongoing, and standard closing costs. That is what the mortgage insurance premium pays for.