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3) Assuming the following data, determine the following: You can purchase a shopping center for $5,000,000. The bank has quoted a 65% LTV, and a
3) Assuming the following data, determine the following: You can purchase a shopping center for $5,000,000. The bank has quoted a 65% LTV, and a 1.30 DCR (Debt Coverage Ratio). The loan would be amortized for 30 years, the annual interest rate is 4.25%. The annual NOI is $300,000. a) Determine the maximum amount of the loan based on the LTV b) Determine the monthly payment of the loan using the PMT function in excel c) Determine the DCR-Debt Coverage Ratio d) How large of a loan could you obtain using the Debt Coverage Ratio and LTV as the two factors to consider
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