There is a mortgage on Roundaway Plantation in the amount of $1,856,000 at an interest rate of 6.9%. This interest rate is fixed through maturity of the loan on January 15, 2012. Interest is due and payable semiannually on January 15 th and July 15 th . An annual principal payment of $48,000 is due every January 15 th . The remaining balance of $1,568,000 is due on January 15, 2012.

     According to our experience with MetLife, this loan can be assumed upon request by the purchaser. However current interest rates for a similar type loan are lower. If the new buyer wishes to seek new financing or pay the entire purchase price for Roundaway Plantation in cash, then the existing mortgage can be paid off by buyer on day of closing. The prepayment penalty would be a percentage of the loan balance: