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Given the following information on an FHA 30-year fixed-payment loan, determine the Up Front Mortgage Insurance Premium amount. Purchase price: $400,000. LTV: 97%. Interest Rate: 7%, UFMIP: 1.75. MMI 1.25. Monthly Escrow payment of Taxes and Insurance: $350.

User Balban
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To determine the Up Front Mortgage Insurance Premium (UFMIP) amount for an FHA 30-year fixed-payment loan, we need to calculate the loan amount and then apply the UFMIP rate.

the Up Front Mortgage Insurance Premium (UFMIP) amount for the FHA 30-year fixed-payment loan would be $6,790.1. Calculate the Loan Amount:

Loan-to-Value (LTV) ratio = Loan amount / Purchase price

Given LTV = 97%, we can find the loan amount:

Loan amount = LTV * Purchase price

Loan amount = 0.97 * $400,000

Loan amount = $388,000

2. Calculate the UFMIP:

UFMIP rate = Loan amount * UFMIP percentage

Given UFMIP percentage = 1.75%, we can calculate the UFMIP amount:

UFMIP amount = Loan amount * UFMIP percentage

UFMIP amount = $388,000 * 0.0175

UFMIP amount = $6,790

Therefore, the Up Front Mortgage Insurance Premium (UFMIP) amount for the FHA 30-year fixed-payment loan would be $6,790.

User Gander
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