Skip to main content

Mortgage Basics

PMI vs MIP Explained

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

5 min readBy NexGen Capital Corp · NMLS 1766649Updated 2026Mortgage Basics

Short answer

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

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

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

Related mortgage option

Ready to apply this to a real loan? Review how Conventional Loans work in Florida, or estimate your monthly payment before you talk to an advisor.

Sources

Program rules change and individual lender overlays apply. Verify specifics with the agency or with a licensed NexGen Capital advisor before relying on them.

Reviewed by NexGen Capital Corp

Written and reviewed by the licensed mortgage team at NexGen Capital Corp, a Florida mortgage brokerage (NMLS #1766649). Verify our license on NMLS Consumer Access.

Last reviewed: 2026

This article is educational and is not a commitment to lend or an offer of credit. Speak with a licensed NexGen advisor about your own situation.

Related articles

Get Started

Ready to make your move?

Get pre-approved in minutes or ask our AI mortgage assistant anything — no pressure, no obligation.