Finance
What is 'mortgage insurance premium' (MIP) on an FHA loan?
AA fee paid to the real estate agent
BAn insurance premium required on FHA loans to protect the lender against default✓ Correct
CA one-time closing cost for title insurance
DA government tax on mortgage transactions
Explanation
FHA's Mortgage Insurance Premium (MIP) protects the lender in case of borrower default. It includes an upfront MIP at closing and an annual MIP paid monthly for the life of the loan (or 11 years if LTV ≤ 90%).
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