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22) The local commercial bank finances complexes of 10 to 25 unit office suites. In an interview with the chief credit officer, the appraiser learns
22) The local commercial bank finances complexes of 10 to 25 unit office suites. In an interview with the chief credit officer, the appraiser learns that the typical loanto-value is 75%. The typical loan rate is 7.5% with 25 years of monthly payments. The bank has a strict: 1.2 debt coverage ratio to grant the loan. The contacted price is $950,000. The property will produce $145,000 in net operating income. What size payment is supported by the property using the bank's criteria? A) $12,083 B) $12,100 C) $14,500 D) $10,069
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