Finance
In Alaska, 'mortgage insurance premium' (MIP) on an FHA loan is paid by the borrower to:
AProtect the borrower against job loss
BInsure the lender against losses from borrower default✓ Correct
CPay for the title insurance policy
DFund the FHA's homebuyer education programs
Explanation
FHA mortgage insurance premiums (MIP) protect the FHA-approved lender against losses if the borrower defaults. MIP includes both an upfront premium (paid at closing) and an annual premium (paid monthly). This insurance allows FHA to offer mortgages with lower down payments to higher-risk borrowers.
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