At what stage is the MIP typically charged?

The correct answer is that the Mortgage Insurance Premium (MIP) is typically charged at closing. This charge occurs at the time the loan is finalized and the property is transferred to the buyer. MIP is an essential component for FHA loans, as it protects the lender in case the borrower defaults on the loan. By charging the MIP upfront at closing, it allows the lender to secure the necessary insurance coverage from the beginning of the loan term.

While MIP can also have annual and monthly components for certain loan types, the initial charge is a one-time payment made at the closing of the mortgage. This upfront premium is required to ensure that the lender can mitigate risks immediately after the loan is disbursed. The other options refer to different aspects of mortgage costs but do not represent the primary stage at which MIP is charged.