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1.Using LTV what is the largest loan you can expect? 2.Using DSCR the largest loan you can expect? Assume that a seller is asking $30,000,000
1.Using LTV what is the largest loan you can expect?
2.Using DSCR the largest loan you can expect?
Assume that a seller is asking $30,000,000 for an office building. You approach the bank about arranging a loan, and the bank's appraiser also concludes that the value of the property is $30,000,000. The following are the bank's standard terms for commercial mortgages: LTV 65% DSCR 1.45 Term 5 years Amort.30 years Rate 6.75% (monthly compounding) NO $2,950,000 What is the most the bank will loan you? Why? (use the assumptions from above)Step by Step Solution
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