User Account

All Pages

What is the maximum-sized loan the lender will advance

Assignment Help Finance Basics
Reference no: EM131735439

Question: 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 9.75% is reasonable for valuation purposes. A lender requires a minimum DCR (or DSCR) of 1.25 and will loan up to 70% of appraised value on a first mortgage. If the mortgage interest rate is 6.75%, payments are monthly, and the amortization period is 20 years, what is the maximum-sized loan the lender will advance?

Reference no: EM131735439

Questions Cloud

Amortization rate and monthly payments on the mortgage : Suppose 10-year Treasury bond yields in the bond market are 7.00% CEY (or BEY), and the mortgage market requires a contract yield risk premium of 175.
An inventory system has fixed inventory schedule : An inventory system has fixed inventory schedule three 1000 unit orders delivered with thee times per year frequency starting on january 1st.
Mmaximum loan that can be made on a property : Using the discounted cash flow (DCF) valuation method, what is the maximum loan that can be made on a property with the following annual net before-tax cash.
What are the traditional measure for meeting customer needs : What are the traditional measure for meeting customer needs? What are the major limitations to these measures?
What is the maximum-sized loan the lender will advance : A property has an expected first-year NOI of $1 million. Recent sales of similar properties indicate that a first-year (or going-in).
Indispensable to the creation of an efficient supply chain : A close integration among participants is indispensable to the creation of an efficient supply chain.
What is the property market expected return : Bob is thinking of buying a property whose five-year net cash flow projection is shown in the following table (occurring at the end of each year).
Discuss the type of distribution channel : Discuss the type of distribution channel you would establish for your company.
Sigma level for the characteristic that showed four defects : what is the overall sigma level for this process? What is the sigma level for the characteristic that showed four defects?

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd