Financial glossary
Mortgage Insurance
In plain English
Insurance or a guarantee fee that protects a lender or government program against mortgage default risk and adds to the borrower’s cost.
Mortgage insurance is a premium or guarantee charge that protects a lender or government program against default risk. Conventional PMI, FHA MIP, VA funding fees, and USDA guarantee fees are different products with different rules. Keep them separate when comparing the mortgage calculator with an FHA estimate.
Related calculators
- FHA Loan CalculatorEstimate an FHA mortgage payment with upfront MIP, annual MIP, down payment, rate, and term. Adjust fees to match your Loan Estimate.
- Mortgage CalculatorEstimate a complete monthly mortgage payment with principal, interest, property tax, insurance, PMI, and HOA dues. See total interest and loan cost.
- Down Payment & PMI CalculatorEstimate cash down, starting loan-to-value, monthly PMI, total PMI, and when scheduled mortgage principal may reach 80% LTV.