What is FHA Mortgage Insurance Premiums (MIP)?
With federal insurance of the HECM comes a mortgage insurance premium. This protects a borrower in many ways, guaranteeing that the federal government will step in to cover the loan if it surpasses the amount the house is worth when sold, or if the lender goes out of business. With the MIP, borrowers are able to rest assured that they will receive their funds no matter what.