Question

Ann wants to buy a building. The annual NOI for the building will be $100,000. She wants to get a 30 year, fully amortizing, fixed rate mortgage at an annual rate of 5% with monthly compounding and monthly payments to buy the building. The lender has a minimum Debt Service Coverage Ratio (DSCR) of 1.20.

If Ann gets a 50% LTV loan for $500,000, what is her DSCR?

Answer #1

She get 50% LTV loan for $500,000, this means she obtained loan of $250,000 (50% on value of building)

P = $250,000; r= 5%/12 = 0.05/12 = 0.00417; n =30years*12months = 360months

EMI = $250,000 * 0.00417 * (1+0.00417)360/[(1+0.00417)360-1]

= $1,042.5 *(1.00417)360/[(1.00417)360-1]

= $1,042.5 * 4.4730865/(4.4730865-1)

= $1,042.5 * 4.4730865/3.4730865

= $1,342.67

EMI is calculated to find out the total Interest & principal repayment during the year. So the one year interest payment & principal repayment = EMI *12months

= $1,342.67 *12 = $16,112.04

DSCR = $100,000/$16,112.04 = 6.21

Ann wants to buy a building. The annual NOI for the building
will be $175,000. She wants to get a 20 year interest only fixed
rate mortgage at an annual rate of 8.35% with annual compounding
and annual payments to buy the building. The lender has a minimum
Debt Service Coverage Ratio (DSCR) of 1.20.
What is the largest annual loan payment the lender will allow
Ann to make based on the DSCR?
A.
$1,746,506.99
B.
$102,600.26
C.
$145,833.33
D....

Ann wants to buy an office building which costs $1,000,000. She
obtains a 30 year fully amortizing fixed rate mortgage with 80%
LTV, an annual interest rate of 4%, with monthly compounding and
monthly payments.
The mortgage has a 2% prepayment penalty if the borrower prepays
in the first 5 years. Suppose Ann makes the required monthly
payment for 3 years and prepays after her final monthly payment at
the end of 3 years. What is the annualized IRR on...

A property has an expected first-year NOI of $1 million. Recent
sales of similar properties indicate that a first-year (or
going-in) cap rate of 12% is reasonable for valuation purposes. A
lender requires a minimum DSCR of 1.25x and will loan up to 75% of
appraised value on a first mortgage. Say the mortgage interest rate
is 6.75%, payments are monthly, and the amortization period is 20
years. (10 points) Hint: solve for the debt
service.
what is the implied loan...

6. Ann is willing to spend $1,500 per month on her mortgage
payment. If Ann obtains a fully amortizing 30 year Fixed Rate
Mortgage with monthly payments at 4.38%, how big of a mortgage can
she get?
7. Ann obtains a fully amortizing 30 year Fixed Rate Mortgage
with monthly payments for $1,250,000 at 4.38%. What will be Ann’s
mortgage balance after 20 years of payments (ie after 240
months)?
8. Ann obtains a fully amortizing 30 year Fixed Rate...

Ann gets a fully amortizing 30-year fixed rate mortgage with
monthly payments. The initial balance is $1,000,000. The interest
rate is 3.50%, compounded monthly. What will be Ann’s loan balance
after her 240th payment (if Ann makes exactly the
required monthly payment for 20 years)?
Using your answer from abovr, what fraction of the 241st payment
will go to principal (in percent)?

Ann gets a fully amortizing 30-year fixed rate mortgage with
monthly payments. The initial balance is $1,000,000. The interest
rate is 3.50%, compounded monthly. What will be Ann’s loan balance
after her 240th payment (if Ann makes exactly the required monthly
payment for 20 years)?
Also, Using your answer from Q11, what fraction of the 241st
payment will go to principal (in percent)?

Jim has an annual income of $180,000.
Jim is looking to buy a house with monthly property taxes of
$140 and monthly homeowner’s insurance of $70.
Jim has $178 in monthly student loan payments.
Apple bank has a maximum front end DTI limit of 28% and a
maximum back end DTI limit of 36%. Both limits must be
satisfied.
Apple bank is offering a fully amortizing 30 year FRM at an
annual rate of 4.5%, with monthly payments, compounded monthly....

15) A banker has an office mortgage proposal that she wants to
sell in a CMBS and wants it all to be shadow rated as an investment
grade loan. The max investment grade proceeds cut-off is BBB-. If
the banker’s underwritten net cash flow from the office building is
$10,000,000, and the rating agency underwrites an 11% haircut to
net cash flow, what is the maximum loan size that will qualify as
investment grade at BBB- using the DSCR test...

Question 2
A property is expected to generate $300,000 of NOI over the next
12 months. Discussion with lenders leads to the conclusion that the
minimum acceptable debt-coverage ratio will be 1.20 and that loan
terms will be 8% per annum, with 20-year amortization (monthly
payments).
A. What is the maximum supportable annual debt service?
Solve 3 ways:
- the PV or PMT functions on Google Sheets
- your HP 12c (tell me which keys you used)
-the Mortgage Constant...

You want to get a commercial mortgage to buy a 10-unit apartment
building that is on the market for $2.0 million. You
have raised $500,000 in equity and have sufficient funds for
closing costs as well. The building has 10 units all of which rent
for $1,500 per month. You believe a vacancy and
collection loss of 5% is reasonable and that operating expenses for
the building will be 30% of EGI. If lenders require a
minimum of 1.3 DCR...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 6 minutes ago

asked 20 minutes ago

asked 41 minutes ago

asked 55 minutes ago

asked 57 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago