Consider two physically identical properties A and B. Property A's current asking price is $570,000 and Property B's asking price is $522,497. Property A's current owner has a 25-year remaining maturity assumable mortgage of $473,100 at a fixed mortgage rate of 11.40%. Property B's current owner has a 25 year remaining maturity non-assumable mortgage of $473,100 at a fixed mortgage rate. The current market mortgage rate for 25-year maturity conventional (not assumable) mortgage is 13.15%. In either Case (A or B), the buyer would have the same amount $473,100 of 25-year fixed rate mortgage financing. The Buyer's Alternative Investment Return is 14.45%.

Given the current asking prices of the two properties, property A's owner is trying to capture what % (rounded to 2 decimals) of the assumable mortgage's benefit (of below market financing)?

Question

31-07-2024
Business

Answered

IDNLearn.com: Your reliable source for finding expert answers. Find the information you need quickly and easily with our comprehensive and accurate Q&A platform.

Consider two physically identical properties A and B. Property A's current asking price is $570,000 and Property B's asking price is $522,497. Property A's current owner has a 25-year remaining maturity assumable mortgage of $473,100 at a fixed mortgage rate of 11.40%. Property B's current owner has a 25 year remaining maturity non-assumable mortgage of $473,100 at a fixed mortgage rate. The current market mortgage rate for 25-year maturity conventional (not assumable) mortgage is 13.15%. In either Case (A or B), the buyer would have the same amount $473,100 of 25-year fixed rate mortgage financing. The Buyer's Alternative Investment Return is 14.45%.

Given the current asking prices of the two properties, property A's owner is trying to capture what % (rounded to 2 decimals) of the assumable mortgage's benefit (of below market financing)?

Sagot :

Thank you for using this platform to share and learn. Don't hesitate to keep asking and answering. We value every contribution you make. Your questions are important to us at IDNLearn.com. Thanks for stopping by, and come back for more reliable solutions.

Which Would Be An Example Of Assimilation?O Renting An Apartment In Your New CountryO Migrating To A New CountryO Learning To Like The Food In Your New CountryO

A Store Purchased A Water Bottle For $12and Sold It To A Customer For 50% Morethan The Purchase Price. The Customerwas Charged A 7% Tax When The Waterbottle Was

When Assessing A Woman In Labour, The Nurse Is Aware That The Relationship Of The Long Axis (spine) Of The Fetus To The Long Axis (spine) Of The Mother Is The F

All Of The Following Conditions Require Brake Shoe Replacement, EXCEPT: (A) Darkening. (B) Glazing. (C) Cracks. (D) Scorin

Solve The Inequality. Use [tex]$\ \textless \ =$[/tex] For [tex]$\leq$[/tex] And [tex]$\ \textgreater \ =$[/tex] For [tex]$\geq$[/tex].[tex]\[ \frac{1}{3} X \

Describe How Human Interaction Affects Physical Geography And Suggest One Method For Conservation Of A Specific Landform Or Water Body

The Intensity Of Radiation From A Radiographic Tube Is 95 C/kg At A Distance Of 36 Inches From The Tube. What Will The Intensity Be If The Distance Is Changed T

What Is The Root Operation For A Complete Right Thyroid Lobectomy?

In The Adjacent Figure BC= BEAE, AB Is Produced To D Then 2) Ly - 2 B) |DBC = 3x C) Both A & B D) None C

The Area Of A Parallelogram Is 4018, And The Lengths Of Its Sides Are 85 And 61. Determine, To The Nearest Tenth Of A Degree, The Measure Of The Obtuse Angle Of

Sagot :

Other Questions