Definition
The mortgage insurance required on FHA loans, consisting of an upfront premium (1.75% of the loan amount, usually financed into the loan) and an annual premium (0.55% for most borrowers, paid monthly). Unlike conventional PMI, FHA MIP lasts for the life of the loan if you put less than 10% down. With 10%+ down, MIP is removed after 11 years.
Related Mortgage Terms
- Down Payment
The upfront portion of the home's purchase price paid in cash by the buyer. Conv...
- Private Mortgage Insurance (PMI)
Insurance required by conventional lenders when the down payment is less than 20...
- FHA Loan
A mortgage insured by the Federal Housing Administration (FHA), designed for bor...
- Amortization
The process of paying off a mortgage through regular monthly payments of princip...
- Annual Percentage Rate (APR)
The total annual cost of a mortgage expressed as a percentage, including the int...
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