1. A property owner has a property with a forecasted net operating income of $100,000 for next year. A lender has indicated that he would make a loan on the property based on a 25 debt service coverage ratio (DSCR), 9.5 percent interest, and 20-year amortization with monthly payments. What loan amount would this owner expect to receive?
   1. $80,000
   2. $666,667
   3. $715,207
   4. $825,000
   5. $900,000
2. As a lender you want to yield 7.25% on your loans but you want to advertise a 6% rate to consumers. Based on 30 year monthly payment mortgages how many points do you need to charge at origination? Assume the loans will be held to maturity.