Mortgage Insurance (PMI / MIP)

Name: Francisco Williams — Mortgage Broker
Address: 552 E Badillo St, Covina, CA, 91723, US
Telephone: (213) 880-8107
Price range: $$

Insurance that protects the lender (not you) when the down payment is less than 20%. Called PMI on conventional, MIP on FHA.

Conventional PMI: removable at 20% equity (automatic at 22%). Monthly cost varies 0.2–1.0% of loan amount annually, depending on FICO and LTV.

FHA MIP: charged upfront (UFMIP, 1.75% of loan amount, financed) AND monthly for the life of the loan on most current FHA files. The only way to eliminate it is to refinance into a non-FHA loan.

VA: no monthly MI. Replaces it with a one-time VA funding fee (2.15–3.3%) financed into the loan. Waived entirely for veterans with VA-rated service-connected disability.

For borrowers above 20% down, no MI applies to any program.

Rates shown are illustrative and subject to change without notice. Actual rate, APR, and terms will depend on creditworthiness, loan-to-value, property type, occupancy, loan amount, loan program, and other factors. Not all applicants will qualify.

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