! 16) In the past a common practice forselling a home was to allow the buyer to"assume the mortgage" this meant that thebuyer would be able to take over theexisting mortgage of the seller. Theadvantage of doing this was that theexisting mortgage might have a lowerinterest rate than the current mortgages.Suppose that a seller of a home has aninterest rate of 3% on his existing mortgageand it is locked in for the next 5 years.Suppose also that the best interest ratebuyers can ger for a new mortgage is 6%. Ifthe mortgage is assumed by the buyer,who benefits: the buyer or the seller?Explain

Buyer can "assume the mortgage" which means for purchasing of a home buyer is not required to take a…

Answered: who benefits: the buyer or the seller?

Business

Accounting

who benefits: the buyer or the seller?

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter14: Property Transactions: Determination Of Gain Or Loss And Basis Considerations

Section: Chapter Questions

Problem 6DQ

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