Finance
The annual mortgage insurance premium (MIP) on an FHA loan is typically:
AA one-time upfront payment only
BBoth an upfront premium at closing and ongoing monthly premiums paid for the life of the loan (for most loans)✓ Correct
COnly paid if the LTV exceeds 97%
DAutomatically cancelled at 80% LTV like conventional PMI
Explanation
FHA MIP includes an upfront MIP (UFMIP) plus annual MIP paid monthly. For most FHA loans (less than 10% down), annual MIP continues for the life of the loan—a key difference from conventional PMI which can be cancelled at 80% LTV.
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