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 ?
Recognizing the challenge that increasing mortgage insurance premiums posed to potential homeowners, FHA announced a 50 basis point cut to the premiums in January 2015.
These include origination fees, servicing fees, closing costs, and mortgage insurance premiums.
Thus we assume that the gross profit margin that the insurer requires is equal to q, and the mortgage insurance premium (FPA) with jump risk is given by the expression:
In March 2012, FHA expanded the reduced mortgage insurance premium program to include loans endorsed or insured prior to June 1, 2009.
He added, "Lower rates and the decision by the [Federal Housing Administration (FHA)] to lower the mortgage insurance premium are also good news for the purchase market.
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.
com, one of the nation's leading online mortgage specialists, the debate over reducing the FHA Mortgage Insurance Premium has implications from the average individual to the government.
26 and drops the FHA annual mortgage insurance premium (MIP) from 1.

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