For Zip ? (Change)
Mortgage Insurance - FAQs
How do you want to learn about mortgage insurance?
We have answers
- What's mortgage insurance premium (MIP) and private mortgage insurance (PMI)?
MIP and PMI are 2 types of mortgage insurance. They add a premium to your monthly mortgage payment but allow you to borrow a larger percentage of your home's value. The type of mortgage insurance you have depends on the type of loan you have. Learn more about how mortgage insurance works.
- How do I pay for MIP or PMI?
In most cases, the insurance premium will be added to your monthly mortgage payment. We'll keep the funds in an escrow account for you and pay the bills on your behalf when they're due.
- How do I know if I have MIP or PMI?
- You have MIP if you have an FHA loan, which is a type of government loan.
- You have PMI if you have a loan that isn't under a government program and your down payment was less than 20%.
- When can my MIP be removed?
Depending on when you either applied for or closed on your loan, your MIP may be automatically removed after a certain amount of time. Learn more about removing MIP.
- When can my PMI be removed?
Your PMI will be removed once the original termination date disclosed to you on the Initial PMI Disclosure is reached.
- How do I find my home's original value or LTV?
Your home's original value is either the price you paid for it or the appraised value at closing, whichever is less.
To calculate your LTV, divide the amount you owe on your loan by your home's original value. Mortgage Balance divided by Home Value equals Loan-to-Value Ratio.