Mortgage Basics

PMI vs MIP Explained

Two kinds of mortgage insurance, two very different sets of rules.

5 min readUpdated 2026Mortgage Basics

PMI (conventional)

Private mortgage insurance applies to conventional loans above 80% LTV. It drops automatically at 78% LTV and can be requested at 80%.

MIP (FHA)

Mortgage insurance premium is upfront (1.75%) plus monthly. On most FHA loans today, MIP stays for the life of the loan.

Key takeaways

  • PMI is temporary; MIP is usually permanent.
  • Reaching 20% equity may justify refinancing off FHA.

Frequently asked questions

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