Finance
A borrower takes a $180,000 FHA loan. What is the approximate upfront mortgage insurance premium (UFMIP) at 1.75%?
A$3,150✓ Correct
B$3,600
C$3,250
D$2,800
Explanation
UFMIP = $180,000 × 1.75% = $3,150. To solve this, multiply the relevant values: $180,000 at 1.75%.. The correct answer is $3,150.. This is a common calculation on the Alabama real estate exam.
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