MIP (Mortgage Insurance Premium)
FHA's version of mortgage insurance. Includes both an upfront premium and an annual premium for the life of the loan if down < 10%.
MIP is FHA's mandatory mortgage insurance. Upfront MIP is 1.75% of loan amount, financed into the loan balance. Annual MIP is 0.55% (most loans), paid monthly. If down payment is less than 10%, annual MIP is paid for the life of the loan. With 10%+ down, MIP drops off after 11 years. Refinancing into a conventional loan once you have 20% equity removes MIP entirely.
Related terms
PMI (Private Mortgage Insurance)
Insurance the borrower pays on conventional loans with less than 20% down, protecting the lender against default loss.
FHA Loan
Government-insured mortgage with low down payment (3.5%) and flexible credit (580+ FICO). Insured by HUD.
LTV (Loan-to-Value)
Loan amount divided by property value, expressed as a percentage. Lower LTV usually means lower rate and easier qualification.
Ready to get a rate?
Compare live mortgage rates from hundreds of lenders, no signup required.
Get instant pricing