Question
Suppose you are interested in taking an FHA mortgage loan for $175,000 in order to purchase your principal residence. In order to do so, you
Suppose you are interested in taking an FHA mortgage loan for $175,000 in order to purchase your principal residence. In order to do so, you must pay an additional up-front mortgage insurance premium (UFMIP) of 0.75% of the mortgage balance. If the interest rate on the mortgage loan is 5.5 % and the term is 15 years and the UFMIP is financed (i.e., it is included in the loan amount), what is the dollar portion of your monthly mortgage payment that is designated to cover the UFMIP?
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Comparative Public Budgeting
Authors: George M Guess
2nd Edition
1316648109, 978-1316648100
