Finance
In Montana, 'mortgage insurance premium' (MIP) on FHA loans differs from PMI on conventional loans in that MIP:
ACan be cancelled when LTV reaches 80%
BIs collected both upfront (at closing) and annually for the life of the loan in many cases, unlike PMI which can be cancelled at 80% LTV✓ Correct
CIs not required on any FHA loans
DIs paid entirely by the lender
Explanation
FHA MIP includes an upfront premium (paid at closing or financed into the loan) and an annual premium (collected monthly). For most FHA loans with less than 10% down, annual MIP continues for the life of the loan, unlike conventional PMI which can be cancelled at 80% LTV.
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