You are an analyst of the FHA program.  The program has an upfront insurance premium of 1.75 percent and an annual premium of .85 percent.  If a borrower gets a 30-year, 4 percent, fixed-rate mortgage, and pays it off in 15 years, and also pays a point, what is the all-in cost of the mortgage to the borrower annually? 

Answer rating: 100% (QA)

Allin cost annually 484 of the borrowed amount borrowed amount 10175 ... View the full answer