Mortgage Insurance Premium


Also found in: Acronyms.

Mortgage Insurance Policy Premium

The premium paid on an insurance policy that provides coverage to a lender in the event that a borrower defaults on a mortgage. This ensures that the lender does not incur a loss if the borrower is unable to repay the loan. While the lender pays the mortgage insurance premium, it generally passes on payment to the borrower, either by requiring payment in the closing costs or by rolling it into the monthly mortgage payment. See also: Mortgage Insurance.

Mortgage Insurance Premium

The upfront and/or periodic charges that the borrower pays for mortgage insurance.

There are different mortgage insurance plans with differing combinations of monthly, annual, and upfront premiums.

References in periodicals archive ?
These include origination fees, servicing fees, closing costs, and mortgage insurance premiums.
HECM borrowers instead pay a mortgage insurance premium (MIP), which protects the borrower by ensuring his or her heirs are not accountable in the event a balance is owed when the borrower dies.
If the shock frequency of the abnormal event (the abnormal volatility of jump size) increases two standard deviations, while all other parameters are fixed, the mortgage insurance premium should increase 0.
In March 2012, FHA expanded the reduced mortgage insurance premium program to include loans endorsed or insured prior to June 1, 2009.
The upfront mortgage insurance premium is now 2 percent of property value regardless of how much the borrower draws.
Castro emphasized that the recent policy move that helped a large number of new buyers get into their first homes was the move last year to cut the mortgage insurance premium for Federal Housing Administration (FHA) loans.
These benefits, that include the state and local sales tax deduction, mortgage insurance premium deduction, educator expenses deduction, tuition and fees deduction and the mortgage debt relief tax benefit, are often referred to as the extenders because they are part of proposed legislation that would extend up to 55 tax breaks that expired last year.
1: The original principal amount of the existing FHA mortgage, in addition to new front mortgage insurance premium of 1.
Under the new rules, borrowers must pay an increased upfront mortgage insurance premium of 2.
Specifically, the proposal would create a zero-downpayment FHA home mortgage program for families with poor credit that would pay for itself by charging borrowers a higher mortgage insurance premium.
12) For example, the FHA insures mortgages that require smaller down payments and, unlike PMI companies, the FHA allows the borrower to finance both closing costs and the mortgage insurance premium.

Full browser ?