FHA Monthly Mortgage Insurance Premium Calculation – Y so Difficult?

If you thought nuclear science was difficult to understand, try calculation of HUD’s annual/monthly FHA Mortgage Insurance Premium on just a 30 year loan …

Basically take .005 times average 1st year mortgage and then 1.225 times that result to get annual divided by 12 to get monthly…

I’m sure it makes sense, but why don’t they just say it’s about $6/$1,000 of final mortgage amount and be done with it?

Source:  http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/comp/premiums/sfpcalc

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