Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. kelly wants to purchase a property for $205,000 an

Kelly wants to purchase a property for $205,000 and you have $30,000 to put down...

60.1K

Verified Solution

Question

Finance

Kelly wants to purchase a property for $205,000 and you have $30,000 to put down as a down payment. The property has an existing mortgage that can be wrapped. This loan is a fixed-rate mortgage at 7 percent, monthly payments. This loan had an original balance of $150,000 and has 20 years remaining on its original 30-year term. The current market rate for a new fixed-rate loan is 10.50 percent for 20 years. The seller will give you a wrap loan for an amount equal to the purchase price minus the down payment at 8.75 percent, monthly payments. What is the effective equity yield for the wrap lender if the wrap loan is written for a term equal to the remaining term of the existing mortgage and both are held to maturity?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Biology
1.2K views

The code for a given amino acid consists of_______ bases(s)A. fourB. twoC. oneD. three

Physics
1.2K views

Network shown find the value of capacitance c is the eq uivalent capacitance between points...

Basic Math
1.2K views

Recently, a certain bank offered a 10-year CD that earns 2.52% compounded continuously.Use the given...

Calculus
1.2K views

zilldiffeqmodap11 7 4 009 EP consider the following initial value problem y y tsin t...

Algebra
1.2K views

Write the Babylonian numeral as a Hindu Arabic 1 meral

Accounting
1.2K views

Boyne University offers an extensive continuing education program in many cities throughout the state. For...

Accounting
1.2K views

Bonita Company manufactures two products, Regular and Supreme. Bonita's estimated overhead costs consist of machining,...

Accounting
1.2K views

Mary has an unused capital loss in 2021. She can carry it forward indefinitely to...

Accounting
1.2K views

Problems: Set A ice P9.1A (LO 1), C Peete Company was organized on January 1....

Accounting
1.2K views

Ralph wants to File as head of household this year Ralph is claiming to dependence...

Accounting
1.2K views

At a sales level of $300,000, James Company's gross margin is $15,000 less than its...

Accounting
1.2K views

Vaughn Company tiene la siguiente informacin sobre una posible inversin de capital: Inversin inicial $...