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What’s the difference between PMI and MIP? PMI (Private Mortgage Insurance): PMI is typically associated with conventional loans, which are mortgages not insured by the government (such as those backed by Fannie Mae or Freddie Mac). PMI is required for borrowers who make a down payment of less than 20% of the home’s purchase price. The premiums for PMI are paid by the borrower and are usually included in the monthly mortgage payment. Once the borrower’s equity in the home reaches 20% (either thr
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