Suppose you are interested in taking an FHA mortgage loan for $350,000 in order to purchase your principal residence. In
Posted: Sun Jul 03, 2022 6:43 am
Suppose you are interested in taking an FHA mortgage loan for$350,000 in order to purchase your principal residence. In order todo so, you must pay an additional up-front mortgage insurancepremium (UFMIP) of 1.0% of the mortgage balance. If the interestrate on the fully amortizing mortgage loan is 6% and the term is 30years and the UFMIP is financed (i.e., it is included in the loanamount), what is the dollar portion of your monthly mortgagepayment that is designated to cover the UFMIP?