MIP (Mortgage Insurance Premium)
FHA’s mortgage insurance charge. Consists of an upfront MIP (1.75% of the loan, typically financed into the balance) and an annual MIP (approximately 0.55%/year on 30-year loans with less than 10% down). Unlike conventional PMI, FHA MIP typically continues for the life of the loan when down payment is below 10%.
How does this affect your loan? Estimate self-employed qualifying income with the DTI calculator, or read the self-employed mortgage guide.
Related terms
- PMI (Private Mortgage Insurance) — Required on conventional loans with less than 20% down. Protects the lender — not the borrower. Typically 0.5–…
- Rate premium — The additional interest rate paid for a non-QM loan above the conventional baseline. The premium exists becaus…
- Prepayment penalty — A fee charged if you pay off the loan early — either through a full payoff (refinance or sale) or, on some pro…
- APR (Annual Percentage Rate) — The total cost of a loan including the interest rate, origination fees, discount points, and other lender char…
- Rate lock — A lender commitment to hold a specific interest rate for a set period (typically 30–60 days) while your loan i…
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Sources
Educational definition only — not financial, legal, or tax advice. Programs and limits change; verify current terms with a licensed professional.