A home worth $ 1,000,000.00 will have a 70% loan at an annual mortgage rate of 8%, with the remaining 30% equity. What must the net operating income (NOl) be in order to generate a 12 per cent cash on cash return? Select the correct response: $700,000.00 $120.000.00 $92.000.00 $84.000.00 $56.000.00

Q: 6. (14pts) When purchasing a $210,000 house, a borrower is comparing two loan alternatives. The…

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Q: You are offered a chance to buy an asset for $4,000 that is expected to produce cash flows of $750…

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Q: 12. A property has an NOI of $800,000. If you have a loan with annual debt service of $600,000, what…

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Q: fane has $1L025 and plan to purchase a 5-year certificate of degosit KD tht y interest, conmpounded…

A:

Q: You have the opportunity to purchase a security that will pay you $100,000 when it matures in three…

A: Solution:Rate of return refers to the return earned by the investor on per annum basis.So, rate of…

Q: Based on the following data, would you recommend buying or renting? Rental Costs Annual rent $ 7,480…

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Q: You want to buy a $210,000 home. You plan to pay $10500 as a down payment, and take out a 30 year…

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Q: Suppose you found a house which comes with a price tag of $200,000. Your bank is willing to finance…

A:

Q: Jake has approached you for a loan and based on your assessment, his cash-flow will accommodate a…

A: The determination of a loan which will be given to any borrower depends upon the borrowing capacity…

Q: A company has the following payment options to settle a loan: ■ Option A: To pay $19,000 today, or ■…

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Q: What is the before tax NPV using a 15% equity discount rate? (round your final answer to whole…

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Q: Assume that you will receive $2500 at the end of 6 years and want to know the present value (PV) of…

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Q: Imagine that you were approved for a $5000, 3 year, 12 percent loan with the finance charges figured…

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Q: You are repaying a loan of ${A} by making payments at the end of every quarter for {B} years.…

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Q: Lenders often require home buyers to pay "points." A point is 1% of the purchase price of the home.…

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Q: A borrower can borrow $10 million at a fixed-rate loan at 7.5% for six years. After some…

A:

Q: Consider a $250,000 loan, 30 years in maturity and 5.25% interest. Calculate the market value of the…

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Q: where a $70,000 loan could be assumed at a 9 percent rate with a remaining term of 15 years and…

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A: working notes: Net  Appraised Value =$3,70,000*70% =$259,000

Q: A house price of $100,000 can be financed with two loans below with monthly payments. The total…

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Q: The price of a condominium is $175,000.The bank requires a​ 5% down payment and one point at the…

A: a) Down payment is 5% of the price Answer: down payment is $8,750 b) Amount of the mortgage is…

Q: Considering the following information, what is the net benefit if the borrower refinances the loan…

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Q: Solve for the unknown interest rate in each of the following: (Your answers should be positive…

A: Interest Rate = (Future Value / Present Value)^(1 / Time) - 1

Q: 24. You purchased a property at a 6% cap rate for $20,000,000. To buy the property you secured a…

A: Cost of property - $20,000,000 Cap rate – 6% LTV- 60% Debt yield - ?   Calculating NOI: NOI =cap…

Q: Mr Ridge range for a mortgage loan for 65% of the 2.5 million purchase price of a home. The monthly…

A: Loan amount = 65% of purchase price of a home = 0.65×2500000 = 1,625,000 Number of monthly payment…

Q: 1). At what property price is it optimal to default on the loan when the borrowing rate is 1%, 5%…

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Q: 6. Assume the annual effective interest rate is i = 2%. An individual wants to invest a capital of…

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Mortgages

A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.

Mortgage

The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.