Question
Ann wants to buy a building. The annual NOI for the building will be $100,000. She wants to get a 30 year, fully amortizing, fixed
Ann wants to buy a building. The annual NOI for the building will be $100,000. She wants to get a 30 year, fully amortizing, fixed rate mortgage at an annual rate of 5% with monthly compounding and monthly payments to buy the building. The lender has a minimum Debt Service Coverage Ratio (DSCR) of 1.20.
If Ann gets a 50% LTV loan for $500,000, what is her DSCR?
| A. | There is not enough information to compute Ann's DSCR. | |
| B. | 3.10 | |
| C. | 1.20 | |
| D. | 4.00 |
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Foundations Of Finance The Logic And Practice Of Finance Management
Authors: Arthur J. Keown, John H. Martin, David F. Scott, John Petty, J. William Petty
5th Edition
0132019299, 9780132019293
