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It would be easy for if the problem is solved via excel thank you 2 There are two possible investment properties under consideration. One property
It would be easy for if the problem is solved via excel
thank you
2 There are two possible investment properties under consideration. One property (A)can be purchased for $150,000 with a loan for 80% LTV at 10.5% for 20 years. Another (property B) is $160,000 has an assumable mortgage of $100,000 at 9% with 20 years remaining. Monthly payments on the assumable loan are $899.73. A second mortgage for $20,000 can be obtained at 13% for 20 years. If the properties are identical in every way except the financing option which would you choose? b. How would the answer change if the second mortgage of $20,000 could be obtained for 9%? How would the answer change if a second mortgage was available for property B with the same 9% rate as the assumable so that no down payment would be required? a. CStep by Step Solution
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