Finance

A Minnesota first-time homebuyer purchases a home for $285,000 with 3.5% FHA down payment. The FHA charges an upfront mortgage insurance premium (UFMIP) of 1.75%. What is the UFMIP?

A$4,987.50✓ Correct
B$9,975.00
C$4,312.50
D$4,837.50

Explanation

Down payment = $285,000 x 3.5% = $9,975.

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