Monthly Mortgage Insurance Explained

Introduction

Monthly mortgage insurance is paid with each mortgage payment. For FHA loans, it's the annual MIP spread over 12 months. For conventional loans, it's PMI. Both protect the lender when you put down less than 20%. See What Is PMI, What Is Mortgage Insurance Premium, and Upfront Mortgage Insurance Explained.

Frequently Asked Questions

What is monthly mortgage insurance?

Monthly mortgage insurance is paid with each mortgage payment. For FHA loans, it's the annual MIP (spread over 12 months). For conventional loans, it's PMI. Both protect the lender when you put down less than 20%.

How much is monthly MI?

FHA annual MIP varies by loan term, amount, and LTV—typically 0.45% to 1.05% of the loan amount per year, divided by 12. Conventional PMI varies by lender and credit profile.

When can I remove monthly PMI?

Conventional PMI can typically be removed when you reach 80% LTV (loan-to-value) through payments or appreciation, or at the midpoint of an amortization schedule. FHA MIP often lasts longer.

Is monthly MI included in PITI?

Yes. Mortgage insurance is part of your monthly housing payment and is included in PITI (Principal, Interest, Taxes, Insurance). See What Is PITI.