There is a $700,000 foreclosed home for sale in your neighborhood. You have been pre-qualified for a one-year loan at 4% interest to cover the full purchase price and anticipate it will take $50,000 to pay off an existing lien. You also know that you will need to invest $5,000 a month in the house for repairs. You know enough about the market to ascertain that this property will sell for $825,000 in one year. If you want a 15% return on your investment, should you make the purchase?
Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
There is a $700,000 foreclosed home for sale in your neighborhood. You have been pre-qualified for a one-year loan at 4% interest to cover the full purchase price and anticipate it will take $50,000 to pay off an existing lien. You also know that you will need to invest $5,000 a month in the house for repairs. You know enough about the market to ascertain that this property will sell for $825,000 in one year. If you want a 15%
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