Bud is offering a house for sale for $180,000 with an assumableloan which was made 5 years
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Question:
Bud is offering a house for sale for $180,000 with an assumableloan which was made 5
years ago for $140,000 at 8.75% over 30 years. Kelsey isinterested in buying the
property and can make a $20,000 down payment. A second mortgagecan be obtained
for the balance at 12.5% for 25 years. What is the effectivecost of the combined loans,
if Kelsey would like to compare this financing alternative toobtaining a first mortgage for
the full amount?
Related Book For
The Legal Environment of Business
ISBN: 978-0538473996
11th Edition
Authors: Roger E Meiners, Al H. Ringleb, Frances L. Edwards
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