Author: Steven P. Mooney

Start Page: 89
End Page: 106
Volume: 5
Issue Number: 1
Year: 1990
Publication: Journal of Real Estate Research

Abstract: When a residential sale is financed using a below-market rate of interest, as with a mortgage assumption or a contract for deed, the sale price may have incorporated into it the capitalized value of the financing. One technique that is used to determine the value of the below-market financing is the cash equivalency calculation. Using cash equivalency, this study addresses the question of whether advantageous financing has the same value in two separate and dichotomous housing markets.