Finance

On a $200,000 FHA loan in Maine, the upfront mortgage insurance premium (UFMIP) is 1.75%. The amount added to the loan is:

A$1,750
B$2,500
C$3,500✓ Correct
D$5,000

Explanation

UFMIP = $200,000 × 1.75% = $3,500. This amount is typically financed into the loan amount. 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 Maine real estate exam.

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