Definition: UFMIP is the initial mortgage insurance premium charged on applicable FHA loans, paid at closing or financed into the mortgage when permitted.
Example
A borrower finances the upfront premium, increasing the starting loan balance instead of paying that amount entirely in cash.
Keep the distinction clear
The upfront premium is separate from the annual MIP collected in monthly installments. Financing it does not make it free; it adds to the balance on which loan costs are based.
Related terms
Mortgage Insurance Premium (MIP) · Federal Housing Administration (FHA) · Principal
Keep studying
Loan-to-Value, Down Payments, Equity, and PMI
References: CFPB: mortgage insurance
Pronunciation (US): UP-fruhnt MOR-gij in-SHOOR-uhns PREE-mee-uhm (capitals show stress)
Pronunciation reference: Merriam-Webster
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