vatche saatdjian, expert on FHA loans — 30+ years of experience
MORTGAGE INSURANCE EXPLAINED
Mortgage insurance protects lenders when buyers put down less than 20%. FHA uses MIP (Mortgage Insurance Premium), Conventional uses PMI (Private Mortgage Insurance). The difference affects your monthly payment and how long you'll pay it.
Nevada-specific costs • Real payment examples • NMLS #65506
Both mortgage insurance types protect lenders, but they work very differently. Here's how MIP and PMI compare for Nevada homebuyers.
Mortgage Insurance Premium
1.75% of loan amount, financed into your loan (doesn't require cash at closing). On a $400K loan, that's $7,000 added to your loan balance.
0.55% to 0.85% per year (paid monthly). Varies by loan amount, down payment, and loan term.
$400K loan @ 0.55% =
$183/month in MIP
$400K loan @ 0.85% =
$283/month in MIP
With less than 10% down:
MIP remains for the
life of the loan
With 10%+ down: MIP drops
off after 11 years
Refinance into a Conventional loan once you reach 20% equity, or pay off the loan entirely. You cannot cancel MIP on an existing FHA loan.
Private Mortgage Insurance
None typically. Most Conventional loans do not charge an upfront premium. You pay PMI monthly only.
0.30% to 1.50% per year (paid monthly). Varies significantly by credit score, down payment, and loan-to-value ratio.
$400K loan @ 0.50% (good credit) =
$167/month
$400K loan @ 1.00% (fair credit) =
$333/month
PMI
automatically cancels at
78% LTV (22% equity)
You can request removal at
80% LTV (20% equity) with proof of value
Contact your lender once you reach 20% equity. You may need a new appraisal to confirm your home value. PMI drops off automatically at 22% equity.
Get personalized cost comparison — Nevada FHA & Conventional options