Finance

An Alaska borrower with a $200,000 FHA loan pays an upfront mortgage insurance premium (UFMIP) of 1.75%. The UFMIP is:

A$2,500
B$3,500✓ Correct
C$3,750
D$4,500

Explanation

UFMIP = Loan amount × 1.75%. $200,000 × 1.75% = $3,500. To solve this, multiply the relevant values: $200,000 at 1.75%.. The correct answer is $3,500.. This is a common calculation on the Alaska real estate exam.

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