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Frequently asked questions

What is mortgage insurance premium (MIP)?

Mortgage insurance premium (MIP) is an upfront and annual insurance premium that's required for any Federal Housing Administration (FHA) home loan—regardless of the size of the down payment. It protects the lender in case the borrower defaults on the loan. MIP differs from private mortgage insurance (PMI), which is reserved for conventional loans. Read this article to learn how mortgage insurance premium gets calculated.