Question: Consider two physically identical properties A and B . Property A ' s current asking price is $ 5 7 0 , 0 0 0
Consider two physically identical properties A and B Property As current asking price is $ and Property Bs asking price is $ Property As current owner has a year remaining maturity assumable mortgage of $ at a fixed mortgage rate of Property Bs current owner has a year remaining maturity nonassumable mortgage of $ at a fixed mortgage rate. The current market mortgage rate for year maturity conventional not assumable mortgage is In either Case A or B the buyer would have the same amount $ of year fixed rate mortgage financing. The Buyer's Alternative Investment Return is
a given the current asking prices of the two properties, property As owner is trying to capture what rounded to decimals of the assumable mortgage's benefit of below market financing
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