Question: please answer using financial calculator and solve with steps You have a choice between the following two identical properties: Property A is priced at $150,000

please answer using financial calculator and solve with steps
please answer using financial calculator and solve with steps You have a

You have a choice between the following two identical properties: Property A is priced at $150,000 with 80% financing at a 10.5% interest rate for 20 years. Property B is priced at $160,000 with an assumable mortgage of $100,000 at 9% interest rate with 20 years remaining. Monthly payments are $899.73. A second mortgage for $20,000 can be obtained at 13% interest for 20 years. All loans require monthly payments and are fully amortizing. A) With no preference other than financing, which property would you choose? B) How would your answer change if the seller of property B provided a second mortgage for $20,000 at the same 9 percent rate as the assumable loan? C) How would your answer change if the seller of property B provided a second mortgage for $30,000 at the same rate as the assumable loan so that no additional down payment would be required by the buyer if the loan were assumed

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!