I am looking at a park for 400k. The current owner only has 1st that is being financed by the previous owner. The terms are: $120k over 10 years, 0% interest, no balloon, non-recourse, no ‘Due on Sale’ clause, no prepayment penalty, and assumable. There are 9 years left.
What would be a reasonable premium to pay to assume that loan, if any?