MIP - Mortgage Insurance Premium
The definition of mortgage term: Mortgage Insurance Premium
MIP is insurance paid for by the borrower of FHA loans. It is similar to PMI, in that it is a safety measure put into place to protect the lender if the borrower defaults. Borrowers are charged a 1% upfront MIP as well as an annual MIP of around 1.15%. 1/12 of the annual fee is paid each month and deposited into an escrow account for the lender to use when the payment is due.
Go back to the Mortgage Terms page to learn more!