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Marginal Cost Of Funds. The incremental cost of borrowing more money to fund additional asset purchases or investments. In its simplest calculation, the marginal cost of funds is simply the interest rate on the new loan balance.
âConventionalâ financing typically refers to a standard 30 year fixed rate mortgage. While FHA is also a 30 year fixed rate, It has a lower down payment amount and also has monthly PMI (Personal Mortgage insurance) which makes the payment higher than a âconventionalâ loan.