Partial-Am I figuring this right? - Posted by David (NV)
Posted by David (NV) on December 03, 1998 at 24:35:43:
O.K. Here’s a note I’m trying to figure a partial on.
Note $26,500 @ 10% for 240 months. It’s in second pos. with high LTV. 15 payments have been made and seller wants to sell 120, leaving 105.
Now, for 24% yield, do I pay $12,638 and give a compesating note for 11,593 (43.75% which is amount of note seller retains).
Or, is the partial price based on 1/2 the face value of note, making the offer closer to 8,000 with same compensating note???
Or, am I thouroughly confused and need a therapist?