Question 1

Mortgage Revenue Bonds,a class of bonds called municipals,are issued by state and local governments and:

Accepted Answer

Mortgage Revenue Bonds provide interest that is free of federal taxation, making them attractive to investors who are looking for tax-free income. This is a significant benefit, as it allows investors to keep more of their investment earnings.

Question 2

The term "cash equivalent" value refers to:

Accepted Answer

The term "cash equivalent" value refers to the value of a property if sold for all cash. This means the amount of money that a buyer would need to have on hand to purchase the property outright, without any mortgage or financing.

Question 3

The term "carryback financing" refers to:

Accepted Answer

Carryback financing is when a seller agrees to take back a note or mortgage from the buyer instead of requiring the buyer to obtain financing from a third-party lender. The seller becomes the lender and will receive payments from the buyer, including interest, until the note is paid in full. The interest rate on a carryback note can be lower than market rates, making it an attractive option for buyers who might not otherwise qualify for a traditional mortgage.

Quiz 7: Financing and Property Values

Mortgage Revenue Bonds,a class of bonds called municipals,are issued by state and local governments and:

The term "cash equivalent" value refers to:

The term "carryback financing" refers to: