Ann wants to buy a building. The annual NOI for the building will be $145,000. She wants to get a 20 year interest only fixed rate mortgage at an annual rate of 6.50% with annual compounding and annual payments to buy the building. The lender has a minimum Debt Service Coverage Ratio (DSCR) of 1.25. The lender also has a maximum LTV requirement of 70%. The asking price is $2,750,000. What is the largest mortgage the lender will give Ann based on both the DSCR and LTV requirements

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A: Mortgage is long-term amortized loan which is used to buy fixed assets, generally houses. Mortgages…

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A: In order to calculate the monthly payment for both the type of mortgage PMT Excel function is used…

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A: The time value of money recognizes the idea that the value of an amount of money today differs from…

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Q: A property has a maturing loan and needs to be refinanced. It is appraised at $25 million based on a…

A: The question is based on the concept of Net Operating Income, debt service coverage ratio (DSCR)…

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

A: The loan amount would be the remaining amount after deducting the down payment from the purchase…

Q: The Nguyens are thinking of buying a home for $121,000. A potential lender advertises an 80%,…

A:

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A: Mortgage loans are paid by equal monthly payments that carry payment for interest and payment for…

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A: Note: No intermediate rounding is done for calculation in the successive steps.   Cost of cabin is…

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A: Here,Bank ABank BCost of House $ 115,000.00 $ 115,000.00Down Payment20%15%Interest Rate10.50%10%Time…

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A: Balloon payment calculation:

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A: Cost of condo=$511000Down payment=20%Term=20 yearsInterest rate=5.60%

Q: A family wants to purchase a house that costs $135,000. They plan to take out a $125,000 mortgage on…

A: A mortgage is a loan on a property where the collateral is the property itself.

Q: do you use APR and EAR in finance calculations? I have a question here and unsure how to solve it. I…

A: Loans are paid by monthly payments and these monthly payments carry the payment for interest and…

Q: Barbie is going to borrow $5,000 to help write a book.  The loan is for one year and the money can…

A: Option 1: 1 year loan borrowed at prime rate = 11%Effective interest cost = 11%Option 2: 1 year loan…

Q: The Fritzes are buying a house that sells for $74,000. The bank is requiring a minimum down payment…

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Q: Suppose you take out a 30-year mortgage for a house that costs 5490, 236. Assume the following: The…

A: Here, Cost of House $         5,490,236.00Minimum Down Payment18%Annual Interest Rate3.60%Annual…

Q: If I am planning to buy a house in McKinney, AR for $300,000. The lender offers me the following…

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Q: John Lloyd and Izan want to buy a $138,000 home. They plan to pay 20% as a down payment, and take…

A: Price of house  $ 1,38,000.00 Down payment 20% Interest rate 4.15% Time period 30 years To…

Q: You’ve decided to buy a house that is valued at $1 million. You have $250,000 to use as a down…

A: The question is based on the concept of amortization of loan in equal periodic installment.by…

Q: The price of a condominium is $127,000. The bank requires a​ 5% down payment and one point at the…

A: Required down payment = $127,000 * 5% = $6350 Amount of Mortgage = $127000 * 95% = $120650 One point…

Q: The Ruffins are negotiating with two banks for a mortgage to buy a house selling for $185,000. The…

A: Assuming monthly payments for the two mortgages. Excel Spreadsheet:

Q: You would like to buy a house that costs $350,000. You have $50,000 in cash that you can put down on…

A: PV is the current worth of cash flows that are expected to occur in the future.

Q: Assume you are purchasing an income-producing property for $10,000,000. The estimated NOI in the…

A: Acquisition cost = $10,000,000NOI = $600,000Annual interest rate = 4%Debt coverage ratio =…

Q: Your annual income is $75,000 and you have $53,000 cash to cover down payment and closing cost of…

A: Mortgage is a value which is borrowed from the sources like bank and repaid it later in fixed…

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Q: Will they get the home loan? You have a gross annual income of $175,000 and have been pre-approved…

A: Back-End ratio shows proportion of monthly income used to pay off debt. Back End Ratio=Monthly Debt…

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Q: Darrell Frye is planning to buy an office building at a cost of $983,000. He must pay 10% down and…

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Q: An investor plans to purchase a 2-bedroom condo in San Francisco. The price of the property is…

A: A loan is taken after giving the down payment. Mortgage payment on the loan amount will be received…

Q: A borrower is purchasing a property for $180,000 and can choose between two possible loan…

A: Loan alternatives refer to the options that are available for the borrower to avail debt. He/she can…