Get A LoanHome PurchaseHome RefinanceCalculatorsMortgage HelpContact Direct Now

Mortgage Insurance (MIP)


Apply Now!

Mortgage Insurance (MIP)

Mortgage insurance (MI) is similar to home or auto insurance in that it insures against loss.  Specifically, it protects a lender against the losses incurred if a borrower defaults on a mortgage.  It is usually required when the borrower provides a down payment that is less than 20% of the home's value or sales price (whichever is less).  When a loan has MI, the borrower’s monthly payment to the loan’s servicer includes a mortgage insurance premium (MIP), which is forwarded to the insurance company.  Depending on the terms of your loan, you can often request to end your mortgage insurance once you have built up sufficient equity. 

Loans that are considered “No MI” still have mortgage insurance involved, but the lender pays it, passing on the cost by charging higher interest rates.  These loans can be good options because even though the interest rate is higher than it would be with a corresponding MI loan, the monthly payments are often lower than the combined regular loan payment and mortgage insurance payment. Additionally, the interest may be tax deductible. 

Ready to start your online mortgage application?
Return to Glossary



Get a Loan   |   home purchase    |   home refinance    |   Mortgage Tools   |   Mortgage Help    |   contact direct

Direct Mortgage, Corp. (NMLS ID 9612) is licensed or operating with a license exemption under the following names: AL, ID, NV, OR, WA: "Direct Mortgage Corp"; AZ, HI, LA, MI, MS, OK, SC, TN, VA: "Direct Mortgage, Corp."; AR, IN, MT, NC: "Direct Mortgage, Corp"; CA: "Direct Mortgage Wholesale Corp."; CO: "Direct Mortgage Corp dba Direct Mortgage Wholesale Corp"; FL: "Direct Mortgage Wholesale Corporation"; GA, NM, WY: "Direct Mortgage Corp."; IL: "Direct Mortgage Wholesale Corp"; OH: "Direct Mortgage Wholesale Corp (Direct Mortgage Corp.)"; TX: 1st Mortgages: "Direct Mortgage, Corp. dba Direct Loans Corp", 2nd Mortgages: "Direct Mortgage Corp dba Direct Loans Corp"; UT: "Direct Mortgage Corporation". Click for more licensing info.
You can view our NMLS consumer access page at
www.nmlsconsumeraccess.org/EntityDetails.aspx/COMPANY/9612

About Us / Terms of Use / Privacy Policy / Licensing Info /
Copyright © 2008-Present, Direct Mortgage, Corp. All Rights Reserved.