Finance
A buyer assumes an existing $200,000 mortgage on an Arizona property. The purchase price is $290,000. The buyer pays the difference in cash. What is the buyer's cash requirement at closing (excluding all other closing costs)?
A$200,000
B$90,000✓ Correct
C$290,000
D$45,000
Explanation
When a buyer assumes an existing mortgage, they take over the existing debt. The cash needed = Purchase price − Assumed loan = $290,000 − $200,000 = $90,000.
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