What was the monthly payment associated

Reference no: EM133290470

Case: Five years ago, Dakota Enterprises purchased an office building for $1,700,000. The company financed the purchase with a 5-year, fixed-rate, partially amortizing mortgage loan with monthly payments and an annual interest rate of 6.48%. The amortization term for the loan was 20 years. The loan involved points of 1.20% and Dakota Enterprises paid other up-front financing costs to the lender of $8,000 and up-front financing costs to third party service providers of $10,000. The original LTV ratio for the loan was 90%. Today, Dakota Enterprises plans to roll over the original loan. The rollover loan would be a 3-year, fixed-rate, partially amortizing mortgage loan with monthly payments and an annual interest rate of 8.88%. The amortization term for this loan would be 30 years. Assume there are no point or fees associated with the second loan.

Question 1: What was the monthly payment associated with the original mortgage loan?

Question 2: What is the principal of the rollover loan at origination?

Question 3: What is the monthly payment associated with the rollover loan?

Reference no: EM133290470

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