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KANSAS MORTGAGE GLOSSARY

Mortgage Insurance Premium (MIP)

Plain-English definition with Kansas context. Written for homebuyers, not mortgage bankers.

What is MIP?

Mortgage Insurance Premium (MIP) is the insurance required on all FHA loans, protecting the FHA fund against default. MIP has two components: an upfront premium of 1.75% of the loan amount (typically financed) and an annual premium paid monthly. For most FHA loans, MIP remains for the life of the loan unless the borrower puts 10% or more down.

More detail

FHA MIP is the key trade-off of an FHA loan: the low down payment and flexible credit come with insurance that rarely goes away. This site is not affiliated with HUD or FHA.

Related terms

FHA · PMI · upfront MIP

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