Real Estate Math

A home sold for $550,000 with 3.5% FHA down payment. What is the loan amount and the upfront MIP at 1.75%?

A$9,288.13✓ Correct
BLoan $525,000 / MIP $9,187.50
CLoan $530,250 / MIP $9,279.38
DLoan $529,000 / MIP $9,257.50

Explanation

Down payment = $550,000 × 3.5% = $19,250.

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