What is the difference between PMI and MIP?
A. Private Mortgage Insurance (PMI) is a form of mortgage insurance required on loans obtained with less than a 20% down payment and are not backed by the Federal Housing Authority (FHA). Mortgage Insurance Premium (MIP) is a form of mortgage insurance required on loans that have received backing from the Federal Housing Authority. This insurance is paid to the U.S. Department of Housing and Urban Development (HUD). Both PMI and MIP are collected with your mortgage loan payments but neither is paid to Chase and should not be confused with other types of insurance such as homeowner’s, flood or windstorm.