Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please show excel calculations A property is available for sale that could normally be financed with a fully amortizing $83,600 loan at a 10 percent
Please show excel calculations
A property is available for sale that could normally be financed with a fully amortizing $83,600 loan at a 10 percent rate with monthly payments over a 25-year term. Payments would be $759.67 per month. The builder is offering buyers a mortgage that reduces the payments by 50 percent for the first year and 25 percent for the second year. After the second year, regular monthly payments of $759.67 would be made for the remainder of the loan term. Required: a. How much would you expect the builder to have to give the bank to buy down the payments as indicated? b. Would you recommend the property be purchased if it was selling for $5,000 more than similar properties that do not have the buydown available? Complete this question by entering your answers in the tabs below. How much would you expect the builder to have to give the bank to buy down the payments as indicated? (Do not round Intermediate catculations. Round your final answer to 2 decimal places.) Complete this question by entering your answers in the tabs below. Would you recommend the property be purchased if it was selling for $5,000 more than similar properties that do not have the buydown avallable Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started