Which factors determine FHA annual MIP calculation?

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Multiple Choice

Which factors determine FHA annual MIP calculation?

FHA annual MIP is driven by the loan’s risk profile within the FHA program. The rate depends on the loan program (FHA), the loan term (how many years the loan runs), and the loan-to-value ratio (LTV) at origination. A higher LTV or a longer term increases the ongoing MIP percentage, while a lower LTV or shorter term lowers it. Credit score, property type, and borrower income don’t set the MIP amount themselves; they mainly affect eligibility or other pricing components, not the annual MIP calculation. So the factors that determine the FHA annual MIP are the loan program, the loan term, and the LTV.

FHA annual MIP is driven by the loan’s risk profile within the FHA program. The rate depends on the loan program (FHA), the loan term (how many years the loan runs), and the loan-to-value ratio (LTV) at origination. A higher LTV or a longer term increases the ongoing MIP percentage, while a lower LTV or shorter term lowers it. Credit score, property type, and borrower income don’t set the MIP amount themselves; they mainly affect eligibility or other pricing components, not the annual MIP calculation. So the factors that determine the FHA annual MIP are the loan program, the loan term, and the LTV.

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