Question:

What is mortgage insurance premium (MIP)?

Answer:

Basically, mortgage insurance premium (MIP) is just a government mortgage insurance.

Private mortgage insurance is the insurance required from all lenders for loans with down payment of less than 20%. Mortgage life insurance is insurance protecting the full repayment of the mortgage. In comparison, what mortgage insurance premium (MIP) is is just what is charged for private mortgage insurance on government secured loans, such as FHA's mortgage loans.

How big is the mortgage insurance premium (MIP)?

The FHA/HUD MIP can be around 1.5% paid upfront or rolled into the FHA loan; or there could also be monthly mortgage insurance premium (MIP). FHA loans used to purchase a condo require only monthly MIPs. The mortgage insurance premium (MIP) is partially refundable.

How to find out if my mortgage insurance premium (MIP) is refundable?

If you ever had an FHA loan, it is very likely you are eligible for a mortgage insurance premium (MIP) refund. The refund amount depends on when you took the loan, as well as how long it took you to repay it. If you want to know if you are eligible for an FHA MIP refund, you could go to the official FHA HUD website and enter your FHA case number.

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