MIP and PMI - difference

Hi Guest,

Well, as the name suggests, PMI is private mortgage insurance where as MIP is mortgage insurance premiums. The option of PMI is applicable for conventional loans when the borrower is unable to pay off the 20% down payment. MIP is added to most of the government loans.

Thanks,

Jerry

Hi Guest,

A MIP may continue throughout the term of the loan but you will be able to cancel the PMI if you have at least 20% equity in your property.

Thanks