Finance

A Massachusetts borrower with a $250,000 FHA loan puts down 3.5%. The upfront MIP (mortgage insurance premium) is 1.75% of the base loan amount. The upfront MIP dollar amount is:

A$4,375✓ Correct
B$4,550
C$4,813
D$5,250

Explanation

Upfront MIP = loan amount × 1.75% = $250,000 × 1.

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