Finance

A Florida buyer obtains an FHA-insured mortgage with a 3.5% down payment on a $200,000 home. The Upfront Mortgage Insurance Premium (UFMIP) currently is 1.75% of the base loan amount. What is the UFMIP?

A$3,500
B$3,395✓ Correct
C$3,430
D$3,325

Explanation

Base loan amount = $200,000 × (1 − 0.035) = $200,000 × 0.

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