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The short answer
Borrower-paid mortgage insurance (PMI or FHA MIP) appears on page 1 of the Loan Estimate in the "Projected Payments" table as part of the estimated monthly payment, and again on page 2 in Section J (Total Closing Costs area) as a line item showing the monthly premium. Lender-paid mortgage insurance (LPMI) does not appear as a line item at all — it is baked into a higher interest rate, so you will only see it as a higher rate in the Loan Terms table on page 1. Knowing where to look matters because two loans with the same rate can have very different MI costs, and LPMI is invisible unless you compare rates across offers.
Page 1: Projected Payments
On page 1, the "Projected Payments" table breaks your monthly payment into Principal & Interest, Mortgage Insurance, and Estimated Escrow. The Mortgage Insurance row shows the monthly PMI/MIP premium for the years it applies — the form even notes the year range (e.g., "Years 1–7") so you can see when the lender expects it to drop off. Check this row first: it is the fastest way to confirm whether an offer includes borrower-paid MI and what it costs per month.
Page 1: Loan Terms table
The Loan Terms table at the top of page 1 shows your interest rate. If a lender quoted you lender-paid MI, the rate here will be higher than a comparable no-MI quote — typically 0.25–0.50% higher as of October 2026 — but there is no MI line item anywhere on the form. The only way to spot LPMI is to compare this rate against other offers for the same loan amount and term.
Page 2: Section J and prepaid items
On page 2, mortgage insurance appears in two places:
- Section J (Total Closing Costs): borrower-paid PMI shows as a monthly line item under the closing-cost breakdown, contributing to the total monthly payment figure.
- Prepaids / initial escrow: lenders often collect 2 months of PMI upfront at closing as a prepaid. That shows in the prepaids section — it is real money due at closing, so include it in your cash-to-close comparison.
What to verify on each offer
| Check | Where to find it | What it tells you |
|---|---|---|
| Monthly MI amount | Page 1, Projected Payments | The actual premium — compare across lenders |
| MI duration | Page 1, Projected Payments (year range) | When the lender expects PMI to drop off |
| Interest rate | Page 1, Loan Terms | Higher than expected? LPMI may be baked in |
| Upfront MI at closing | Page 2, Prepaids | Months of PMI collected before your first payment |
| FHA upfront MIP | Page 2, Section B or loan amount | FHA loans finance 1.75% upfront MIP into the loan |
Common mistakes
- Assuming a missing MI line means no MI cost. With LPMI, the cost hides in the rate. Always ask the lender directly: "Is this borrower-paid or lender-paid MI?"
- Ignoring the MI year range on page 1. Two lenders can quote the same monthly PMI but model different drop-off dates — the longer one costs you more.
- Forgetting prepaid MI at closing. Two months of PMI collected upfront adds hundreds to cash-to-close; it is easy to miss in the prepaids section.
Methodology and limitations
Loan Estimate layout follows the CFPB's TRID disclosure rules, which have been stable since 2015; section references (Page 1 Projected Payments, Page 2 Section J, prepaids) reflect the standard form as of October 2026. PMI cancellation year ranges shown by lenders are estimates based on the amortization schedule, not guarantees. FHA upfront MIP (1.75%) and annual MIP rules are set by HUD/FHA and change periodically — verify current figures before applying.
Reviewed by the LoanMate.ai editorial team.
Primary sources
- Consumer Financial Protection Bureau (CFPB): "What is a Loan Estimate?" and TRID disclosure guides
- Federal Housing Finance Agency (FHFA): mortgage insurance data and policy
- Fannie Mae: private mortgage insurance guidelines
Next action
Browse today's published mortgage rates → to see the market range, then compare your Loan Estimates side by side → when you have offers in hand.