PMI and MIP6 of 11Private mortgage insurance, or PMI, is paid by the borrower to protect the lender's investment when the borrower makes a down payment of less than 20 percent on a home purchase, or when the borrower has less than 20 percent equity in a refinance.But don't let the name fool you. The borrower pays the premium and the lender gets the benefit in the event of default. On a loan insured by the Federal Housing Administration, the borrower pays a mortgage insurance premium, or MIP. Related Articles:Rule would refund feesReturn of the ARMKnow your mortgage capsNew form for closing costsRelated Links:Key mortgage paperworkMortgage essentialsLow score, high payment?Ratios rule mortgages advertisement
Private mortgage insurance, or PMI, is paid by the borrower to protect the lender's investment when the borrower makes a down payment of less than 20 percent on a home purchase, or when the borrower has less than 20 percent equity in a refinance.
But don't let the name fool you. The borrower pays the premium and the lender gets the benefit in the event of default. On a loan insured by the Federal Housing Administration, the borrower pays a mortgage insurance premium, or MIP.
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