Real Estate Math
A buyer assumes an existing mortgage with a balance of $180,000 at closing. The seller originally borrowed $200,000. The buyer will be responsible for what amount in addition to the down payment?
AA. $200,000
BB. $180,000✓ Correct
CC. $20,000
DD. The full purchase price
Explanation
When assuming a mortgage, the buyer takes over the existing balance. The buyer is responsible for the outstanding balance of $180,000, not the original loan amount.
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