Bud Is Offering a House for Sale for $180,000 with an Assumable

question 19

Multiple Choice

Bud is offering a house for sale for $180,000 with an assumable loan which was made 5 years ago for $140,000 at 8.75% over 30 years.Kelsey is interested in buying the property and can make a $20,000 down payment.A second mortgage can be obtained for the balance at 12.5% for 25 years.What is the effective cost of the combined loans,if Kelsey would like to compare this financing alternative to obtaining a first mortgage for the full amount?

• A)10.63%
• B)9.39%
• C)9.04%
• D)11.27%

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Definitions:

Conference Selling

A sales strategy that involves engaging potential clients during conferences, utilizing the event to network, showcase products, and close deals.

Technology-Based Forum

An online platform or website that uses digital technologies to enable users to post discussions, share information, and communicate with each other on various topics.

Buyers

Individuals or organizations that purchase goods or services for personal use, resale, or use in production.

Team Selling

A collaborative approach to sales where multiple individuals work together to close deals, often used in complex or high-value sales processes.