Your property has net operating income of 4,500,000. Assuming you value the property with a cap rate of 6.5%, what is the DSC ratio if the lender will lend up to 75% of value and the rate is 4.5% based on a monthly pay, 30 years, fully amortizing loan?   Group of answer choices   1.43   1.35   1.51   1.27

Q: Suppose you are interested in financing your new home purchase. You have your choice of a myriad…

A: Here, Fixed Rate Alternatives are : 8% fixed rate for 7 years, 8.5% fixed rate for 15 years, 9%…

Q: Suppose you have taken out a $125,090 fully amortizing fixed rate mortgage loan that has a term of…

A: A mortgage refers to a covered loan that is borrowed for purchasing a property with the property…

Q: ou have taken out a $7.500,000 loan with a 4% interest rate, 30 year amortization and ten year term.…

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

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: A company has the following payment options to settle a loan: ■ Option A: To pay $19,000 today, or ■…

A: The question requires us to suggest a better payment option to settle the loan among the 2 given…

Q: 9. Calculate the annual payment for a 20-year mortgage on a P3.5 million building at a 7.5% interest…

A: Solution:- When an equal amount is paid each period at end of period, it is called ordinary annuity.…

Q: 14. You are considering borrowing OMR150,000 to purchase a new home. a. Calculate the monthly…

A: The payments discussed here are a form of annuity wherein an equal amount of payment is made each…

Q: You are buying your first condo for $250, 000 and you will make a $50, 000 down payment. You have…

A: Loan amount = Purchase price - Down paymentMonthly interest rate = Nominal interest rate / Number of…

Q: What is the total interest you will have paid for the scenario below? The home you purchased was…

A: Payment per period can be calculated using PMT function in excel.PMT(rate, nper, pv, [fv],…

Q: Use the following amortization chart: Selling price of home  $77,000, Down payment  $5,000,…

A:

Q: Selling price of home: $198,000 Down payment: $60,000 Principal (loan): 138,000 Rate of interest:…

A: Here, To Find: Part A. Payment per $1,000 =??? Part B. Monthly mortgage payment =????

Q: How much would you pay for an asset that costs you 10,000 for each of four years in a row (starting…

A: Discounting is a technique to compute the present value (PV) of future cashflows by using an…

Q: A borrower can borrow $10 million at a fixed-rate loan at 7.5% for six years. After some…

A:

Q: Consider a 15 year loan for a $5,245,000 home at a LTV of 85%, three discount points, one…

A: Given information: Home loan is $5,245,000 APR on loan is 8.68% Number of years is 15

Q: You are considering the following fixed interest rate mortgage loan alternatives: Alternative 1:…

A: In order to calculate the incremental cost of borrowing, we will have to use the difference in the…

Q: You have the option of buying a property or just leasing it, in the first case you must pay 20% of…

A: Lease refers to the contract which state the terms under which lessor party who is owner of property…

Q: K 6 [1-(1-9] dollar. Consider the following pair of mortgage loan options for a $110,000 mortgage.…

A: The mortgage is taken to purchase or maintain real estate. The borrower pays the lender regular…

Q: You have just purchased a new warehouse. To finance the purchase, you've arranged for a 25-year…

A: Annual percentage rate refers to the cost which is charged on the loan amount by the lender from the…

Q: where a $70,000 loan could be assumed at a 9 percent rate with a remaining term of 15 years and…

A: The question is based on the concept of calculation of present value of periodic loan payments by…

Q: QUESTION 2 You would like to purchase a home and are interested to find out how much you can borrow.…

A: Compound = monthly = 12Monthly Payment = p = $2500Time = t = 30 * 12 = 360Interest rate = r = 6 / 12…

Q: Compare the following two loans and answer the following 2 questions. Loan Option1: $183,000; 5.50%;…

A: A mortgage refers to a loan that is taken out by the borrower to purchase a property. The concept of…

Q: to determine the tegular payment amount, rounded to the nearest dollar Consider the following pair…

A: The mortgage is taken to purchase or maintain real estate. The borrower pays the lender regular…

Q: A property has NOI of 1,000,000 and would trade at a cap rate of 5%.  You can borrow at a 60% LTV,…

A: The question is based on the concept of debt service coverage ratio (DSCR) for property investment.…

Q: Suppose you decide to obtain a 4-year lease for a car and negotiate a selling price of $28,990,…

A: Negotiated price of car$28,990Down payment$2,400Trade in value of old car$3,850Money…

Q: Considering the following information, what is the net benefit if the borrower refinances the loan…

A: Loan refinancing is the process of taking out new loans to pay off old outstanding loans. Borrowers…

Q: PA Use to determine the regular payment amount, rounded to the nearest dollar. Consider the…

A: The repayment of a loan: A long-term fixed mortgage on a house is usually repaid with equal monthly…

Q: Suppose you are buying your first home for $144,000, and you have $17,000 for your down payment. You…

A: purchasing price = $144,000 down payment = $17,000 loan amount = $144,000 - 17,000…

Q: A homeowner can obtain a $250,000, 30-year fixed-rate mortgage at a rate of 6.0% with zero points or…

A: When the lender lends a loan to the borrower, he charges a rate of interest on the borrowed amount.…

Q: Suppose Bank A offers a $201,000, 20-year, 2.1% fixed rate mortgage with closing costs of $1900 plus…

A: We have to find the closing cost in the loan transaction.

Q: Consider a mortgage of 180,000. What is the payment if it has a 15 year fixed rate at 3.5% with…

A: The monthly mortgage payment is the total of the Principal repayment and interest cost which is due…

Q: A borrower is faced with choosing between two loans. Loan A is available for $89,000 at 6 percent…

A: Interest rate refers to the cost which is associated with the loan amount that should be given by…

Q: A commercial property has expected first year NOI of $48,000. If the required debt coverage ratio is…

A: Mortgage loans are given on the basis of ability to pay back the loans and are based on debt…

Q: Mr Ridge range for a mortgage loan for 65% of the 2.5 million purchase price of a home. The monthly…

A: Loan amount = 65% of purchase price of a home = 0.65×2500000 = 1,625,000 Number of monthly payment…

Q: Consider a 30-year, fixed-rate mortgage for $120,000 at a nominal rate of 6% with monthly payments.…

A: Loan amount(PV)=$120,000 Duration (n)=30*12=360 periods Rate per period(i)=0.0612=0.005 Monthly…

Q: D Question 1 A borrower takes out a 30-year mortgage loan for $350,000 with an interest rate of 2%.…

A: Given:Principal = PV = $350,000Interest rate = rate = 2% per year or 2 / 12 = 0.1667% per monthNo of…

Q: Consider the following options for a $153,000 mortgage. Calculate the monthly payment and total…

A: Data given: Mortgage = $153,000 Option 1: N= 30 years Rate = 4.3% Closing cost  = $1500 and no point…

Q: o purchase a new equipment it is necessary to borrow $23000. The equipment dealer offers a 8-year…

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

Effective Interest Rate

The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.