Finance
What is 'mortgage insurance premium' (MIP) in an FHA loan?
AA fee paid to the appraiser for the appraisal
BInsurance paid to the FHA by the borrower to protect the lender against default, required on all FHA loans✓ Correct
CA state fee charged on all Rhode Island mortgages
DThe same as PMI on conventional loans
Explanation
FHA requires Mortgage Insurance Premium (MIP) on all FHA loans—both an upfront MIP paid at closing and an annual MIP included in monthly payments—to protect the FHA (and lenders) against losses from borrower default.
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