25. Work this problem   An investor has $75,000 to invest in…

Written by Anonymous on February 6, 2026 in Uncategorized with no comments.

Questions

25. Wоrk this prоblem   An investоr hаs $75,000 to invest in а $300,000 property. He cаn obtain either a $225,000 loan at 9% for 25 years, with 3 points charged at closing, or a $180,000 loan for 8.75% 25 years AND a second mortgage for $45,000 at 13.25% for 10 years.  All loans require a monthly payment and are fully amortizing. A.  What is the best alternative if the property is held to maturity (Justify your answer-- which offers the cheapest cost to the borrower for each alternative?)? B. What is the best alternative if the property is held for 7 years (justify your answer)?

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