Finance
What is 'mortgage insurance premium' (MIP) versus 'private mortgage insurance' (PMI)?
AThey are identical and interchangeable terms
BMIP is charged on FHA loans; PMI is charged on conventional loans when LTV exceeds 80%✓ Correct
CMIP is charged on VA loans; PMI is charged on USDA loans
DMIP is a one-time fee; PMI is collected monthly
Explanation
MIP (Mortgage Insurance Premium) is required on FHA loans, both upfront and annually. PMI (Private Mortgage Insurance) is required on conventional loans when the down payment is less than 20% (LTV > 80%).
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