Question: 9. An appraiser is looking got comparable sales and finds a property that recently sold for $200,000. she find that the buyer was belt o

9. An appraiser is looking got comparable sales and finds a property that recently sold for $200,000. she find that the buyer was belt o assume the sellers fully amortizing mortgage which had monthly payments based on a 7& interest rate. the balance on the loan at the time of sale was $140,000 with a remaining term of 15 years (monthly payments). the appraiser detainees that if a $140,000 loan was obtained on the same property, monthly payments at the market for a 15-year fully amortized loan would have been 8% with no points.

Assume that the buyer expected to benefit form the interest saving on the assumable loan for the entire loan term. what is the equivalent value of the property?

Please show with financial calculator

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Review the concept map and answer the question. Figure 1: Fulcher, Douglas R., T.C. Summary Opinion 2003-157, Concept Map Figure 2: The Boeing Company and Consolidated Subs., 91 AFTR2d 2003-1088 (123...

9. An appraiser is looking for comparable sales and finds a property that recently sold for $200,000. She finds that the buyer was able to assume the seller's fully amortizing mortgage which had...

Please show how to solve in Excel! 9. An appraiser is looking for comparable sales and finds a property that recently sold for $200,000. She finds that the buyer was able to assume the seller's fully...

A property is available for sale that could normally be financed with a fully amortizing $82,000 loan at a 10 percent rate with monthly payments over a 25-year term. Payments would be $745.13 per...

An appraiser is looking for comparable sales and finds a property that recently sold for $210,500. She finds that the buyer was able to assume the seller's fully amortizing mortgage, which had...

1 4. An appraiser is looking for comparable sales and finds a property that recently sold for $950,000. The appraiser finds that the buyer was able to assume the seller's fully amortizing mortgage...

An appraiser is looking for comparable sales and finds a property that recently sold for $210,500. She finds that the buyer was able to assume the seller's fully amortizing mortgage, which had...

An appraiser is looking for comparable sales and finds a property that recently sold for $ 2 1 5 , 0 0 0 . She finds that the buyer was able to assume the seller's fully amortizing mortgage, which...

10 Problem 6-9 An appraiser is looking for comparable sales and finds a property that recently sold for $213,500. She finds that the buyer was able to assume the seller's fully amortizing mortgage,...

An appraiser is looking for comparable sales and finds a property that recently sold for $225,500. She finds that the buyer was able to assume the seller's fully amortizing mortgage, which had...

Problem 6 - 9 An appraiser is looking for comparable sales and finds a property that recently sold for $ 2 0 4 , 5 0 0 . The appraiser finds that the buyer was able to assume the seller's fully...

Consider the following statement: Monetary policy and fiscal policy are really the same thing because they both can involve the buying and selling of U.S. Treasury securities.Do you agree or disagree...

What is the degree of the root of Bk? Prove that your answer is correct.

Which of the following would not be considered a manufacturing overhead cost for a company that manufactures and sells clothes? ( 1 Point ) Oil used to lubricate the sewing machines Wages paid to...

BYP18-1 Your parents are considering investing in Apple Inc. common stock. They ask you, as an accounting expert, to make an analysis of the company for them. Apple's financial statements are...