[quote=bearishgurl]Future buyers who take mortgages out will be constrained by the appraisal at the time, which will reflect its value as if it still has the MR encumbrance.[/quote]
Future buyers will also be constrained by the fact that the bank will explicitly add the monthly debt/payment burden into the forumla to calculate what kind of payment you can make. Removing the $475 payment helps you take on more debt.
So, you would have a $4000 morgage payment plus $475 per month MR or you could have a $4475 mortgage payment, allowing you to borrow more.
