Real Estate Math

An Indiana buyer's FHA loan requires a 1.75% upfront mortgage insurance premium (MIP) added to the loan amount. On a base loan of $280,000, what is the total financed amount?

A$280,000
B$284,900✓ Correct
C$285,800
D$286,500

Explanation

MIP = 1.75% × $280,000 = $4,900.

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