Schedule of constant and fixed-rate payment mortgage

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Reference no: EM131320454

1. The amortization schedule of a constant/fixed-rate payment mortgage shows:

That the principal balance declines with each payment.

That the interest portion of the payment declines with each payment.

That the portion of the payment representing payment of principal increases with each payment.

All of the above.

2. A lender requires a 1.20 debt coverage ratio as a minimum. If the net operating income of a property is $60,000, what is the maximum amount of debt service the lender would allow?

$30,000

$50,000

$60,000

$72,000

Reference no: EM131320454

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