2 There are two possible investment properties under consideration. One property (A) can be purchased for...

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2 There are two possible investment properties under consideration. One property (A) can be purchased for $150,000 with a loan for 80 LTV at 10.5% for 20 years. Another (property B) is $160,000 has an assumable mortgage of $100,000 at 9% with 20 years remaining. Monthly payments on the assumable loan are $899.73. A second mortgage for $20,000 can be obtained at 13% for 20 years. If the properties are identical in every way except the financing option which would you choose? a. Property A 2 There are two possible investment properties under consideration. One property (A) can be purchased for $150,000 with a loan for 80 LTV at 10.5% for 20 years. Another (property B) is $160,000 has an assumable mortgage of $100,000 at 9% with 20 years remaining. Monthly payments on the assumable loan are $899.73. A second mortgage for $20,000 can be obtained at 13% for 20 years. If the properties are identical in every way except the financing option which would you choose? a. Property A

Answer rating: 100% (QA)

To determine which property is the better option lets compare the financing options for Property A a... View the full answer