Real Estate Math

A Utah buyer's FHA loan requires 3.5% down on a $320,000 purchase. How much is the upfront mortgage insurance premium (UFMIP) at 1.75% of the base loan amount?

A$308,800✓ Correct
B$5,600
C$4,200
D$6,100

Explanation

Base loan = $320,000 × (1 − 0.035) = $308,800.

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