What is Mortgage Insurance?

Mortgage insurance can protect a lender against specified losses if a borrower defaults. Whether it is required, who pays it, and how it can end depend on the country, lender, and loan program.

Private Mortgage Insurance (PMI)

In the US, some conventional loans include private mortgage insurance (PMI). Cost and payment structure vary by loan terms, borrower profile, and lender.

US PMI cancellation rights and lender practices depend on the loan, applicable law, and program terms. Confirm the threshold and process with the servicer.

FHA Mortgage Insurance Premium (MIP)

US FHA loans can include upfront and annual mortgage-insurance premiums. Current amounts and cancellation rules depend on FHA program terms and the specific loan; verify them with an approved lender or servicer.

You can include estimated monthly mortgage insurance in the Mortgage Calculator, then compare the affordability assumptions with the Affordability Calculator.