Real Estate Math

A North Dakota lender's annual mortgage insurance premium (MIP) on an FHA loan of $240,000 is 0.85%. What is the monthly MIP charge added to the payment?

A$142.50
B$153.00
C$170.00✓ Correct
D$183.33

Explanation

Annual MIP = $240,000 × 0.85% = $2,040.

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