Real Estate Math

A buyer in Toledo purchases a $195,000 home with an FHA loan (3.5% down) and pays a 1.75% upfront MIP. What is the upfront MIP dollar amount?

A$3,238
B$3,281✓ Correct
C$3,328
D$3,500

Explanation

Down payment = $195,000 × 3.5% = $6,825.

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