What Is A Mortgage Insurance Premium (MIP)?

Definition of "What is a mortgage insurance premium (MIP)?"

Barbara Gargiulo real estate agent

Written by

Barbara Gargiuloelite badge icon

Prominent Properties Sotheby's International Realty

A mortgage insurance premium is a policy that insures the lender against loss if the homeowner defaults on a mortgage.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Mortgage Questions

Popular Mortgage Glossary Terms

A lender who delivers loans to another (usually larger) lender against prior price commitments the larger lender has made to the correspondent. Mortgage brokers sometimes evolve into ...

A very large increase in the payment on an ARM that may surprise the borrower. The term is also used to refer to a large difference between the rent being paid by a first-time home buyer ...

The specific interest rate series to which the interest rate on an ARM is tied, such as 'Treasury Constant Maturities, One-Year,' or 'Eleventh District Cost of Funds.' ...

The option to convert an ARM to an FRM at some point during its life. ...

A payment made after the grace period stipulated in the note, usually 10-15 days. ...

Same as term housing expense. The sum of the monthly mortgage payment, hazard insurance, property taxes, and homeowner association fees. Housing expense is sometimes referred to as PITI, ...

The amount of the original loan remaining to be paid. It is equal to the loan amount less the sum of all prior payments of principal. ...

The interest rate or rates and upfront fees paid to the lender and mortgage broker. Some upfront charges are expressed as a percent of the loan, and some are expressed in dollars. The ...

A plan purporting to protect FHA homebuyers against property defects. ...