Definitions for "Mortgage Insurance Premium (MIP"
The fee paid by a borrower for mortgage insurance. Fees are generally paid to the FHA or private insurer.
Payment made to HUD on an FHA loan. These monies provide a reserve fund to protect the lenders against loss. Paid monthly, and calculated as, .5% multiplied by the loan amount and divided by 12-months.
The consideration paid by a mortgagor (borrower) to the FHA or a private insurer for mortgage insurance.