Mortgage Insurance Premium (MIP)
Definition - What does Mortgage Insurance Premium (MIP) mean?
Mortgage insurance premium is just like any other premium, but it is paid on the insurance policy. This policy is used to secure the lender in case the borrower goes into default on their mortgage payments. This insurance is known as mortgage insurance. The main aim of this policy is to safeguard the lender from suffering huge losses.
Justipedia explains Mortgage Insurance Premium (MIP)
It is the lender who is required to pay this insurance premium, but the lender usually passes the premium on via the mortgage payment to the borrower. This can either be done by including the payment in closing cost or making it a part of monthly mortgage payment.