Hi Terrance--Judy is exactly right. I'd just add one thing. The amount that the mortgage insurance will repay the bank/lender if there's a default of the loan is 20%. A common misconception is that the whole note was guaranteed by mortgage insurance. It's only the part of the loan that was above 80% of the value of the appraisal (technically, the part that was not "secured" by the downpayment and/or value of the property.
In the "old days" (2-3 years ago), homes generally rose in value year over year so lenders were fairly confident that if they only loaned you 80% of the value and you defaulted, the 20% of "excess value" (which as also insured with MIP) would be sufficient to pay any liens or costs to foreclose on the buyer. Unfortunately, with so many mortgages being upside down now (even the 80% is more than the house is worth) and lenders are having to eat huge amounts of debt when they foreclose or sell short.
You will be required to pay MIP or PMI (if it's a private mortgage and not government backed). Some of it will be up front (at closing) and then there will be a monthly amount added to your payment. I'd suggest you shop lenders to get the best rate and lowest closing costs. Make sure you get a "Good Faith Estimate" (GFE) so you can properly compare what everything is costing you to get the loan.
Best of luck to you. It's a great time to buy. Remember that while there have been similar hard times where housing values have declined in the short term, real estate is one thing that has continued to appreciate in value over time. Wish I could say the same thing for my stock portfolio.
Coldwell Banker Residential Real Estate