Question
An investor has $60,000 to invest in a $280,000 property. He can obtain either a $230,000 loan at 8.5% for 20 years or an $180,000
An investor has $60,000 to invest in a $280,000 property. He can obtain either a $230,000 loan at 8.5% for 20 years or an $180,000 loan at 9% for 20 years and a second mortgage for $40,000 at 11% for 15 years. All loans require monthly payments and are fully amortizing. Please show work
- What alternative should the investor choose, assuming ownership for the full loan term?
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American Public School Finance
Authors: William Owings, Leslie Kaplan
2nd Edition
1111838046, 978-1111838041
