What is the purchase money mortgage amount for a property?

To determine the purchase money mortgage amount for a property, one must understand that a purchase money mortgage is a loan created simultaneously with the purchase of a property, where the buyer borrows money to pay for the property and uses the property itself as collateral for the loan.

In this scenario, if the purchase price of the property is set at a particular amount and the buyer is utilizing a mortgage to finance that purchase, the purchase money mortgage would typically be an amount that aligns with either the total purchase price or the financed portion of it, minus any down payment made.

In this context, the answer of $130,000 indicates that this is perhaps the amount financed through the mortgage, which could have been determined by factors such as the overall purchase price of the property and how much the buyer has prepaid. This figure logically represents either the purchase price after accounting for a down payment or simply the total amount of the loan taken out for the purpose of acquiring the property in question.

Understanding the purchase money mortgage concept is crucial in real estate transactions, as it helps buyers finance their properties while also establishing the relationship between the property's price and the mortgage amount needed to complete the purchase.