PMI vs. MIP on Florida Mortgages — Differences and How to Remove Them
PMI vs MIP Florida mortgage: what each one costs, when you pay it, and how to get rid of mortgage insurance on your Florida home loan.
Educational content only. This article is for informational purposes and does not constitute financial, legal, or lending advice. Loan programs, rates, and eligibility requirements change frequently. Consult a licensed mortgage professional before making any borrowing decision. Mortgage Capital | NMLS# 1859012 | Licensed in Florida.
PMI and MIP are both mortgage insurance, but they work differently and are not interchangeable. Understanding the PMI vs MIP distinction on a Florida mortgage helps you pick the right loan and know when you can drop the extra cost.
What Is PMI
PMI stands for private mortgage insurance. It's required on conventional loans when you put down less than 20%. The cost typically runs 0.5–1.5% of the loan amount per year, added to your monthly payment.
PMI on a Florida conventional loan is cancellable. Once you hit 20% equity — through payments or appreciation — you can request removal. Federal law requires lenders to automatically cancel PMI once you reach 22% equity based on the original purchase price.
What Is MIP
MIP stands for mortgage insurance premium. It applies to FHA loans. MIP has two parts: an upfront premium of 1.75% of the loan amount paid at closing, and an annual premium paid monthly.
The annual MIP rate in 2026 is typically 0.55% for most Florida FHA borrowers with 30-year loans. But unlike PMI, MIP on a recent FHA loan with less than 10% down is permanent unless you refinance.
How to Remove Mortgage Insurance
Removing PMI on a conventional loan is straightforward. Request removal in writing when your balance drops to 80% of the original purchase price. If your home has appreciated, an appraisal can establish the new value and speed up the timeline.
Removing FHA MIP is harder. For loans with less than 10% down, MIP stays for the life of the loan unless you refinance into a conventional. If you've built equity and your credit qualifies, a conventional refinance eliminates MIP entirely.
Running the Numbers for Florida Buyers
On a $350,000 loan, FHA MIP adds about $160 per month. PMI on the same balance might add $140–$180 monthly depending on credit. The upfront FHA MIP of 1.75% adds $6,125 rolled into the balance.
The right choice depends on your credit score, down payment, and how long you plan to stay. FHA often wins for scores below 680. Conventional wins for buyers with strong credit who plan to remove PMI in a few years.