FinancingGovernment_backed_loansEASY
A borrower makes a $175,000 FHA loan. The upfront MIP is 1.75 percent of the loan amount. If the borrower pays the UFMIP at closing rather than financing it, how much must the borrower pay?
Correct Answer
B) $3,062.50
UFMIP = $175,000 × 1.75% = $3,062.50. This is the amount the borrower pays at closing if not financing the premium.
Answer Options
A
$1,750B
$3,062.50C
$4,375D
$3,500Why This Is the Correct Answer
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Deep Analysis of This Financing Question
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Related Topics & Key Terms
Key Terms:
FHA_loanUFMIPcalculationclosing_costsfinancing
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