Real Estate Math
A buyer is assuming a seller's existing mortgage of $185,000. The seller's original purchase price was $230,000. If the home is selling for $295,000, what cash does the buyer need for down payment (before closing costs)?
A$110,000✓ Correct
B$45,000
C$85,000
D$60,000
Explanation
Cash needed = Sale price − assumed mortgage = $295,000 − $185,000 = $110,000. Using the values given ($185,000, $230,000), apply the appropriate formula.. The correct answer is $110,000.. This is a common calculation on the Georgia real estate exam.
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