Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Ann wants to buy a building with an asking price of $3,000,000 (this is also the value). The annual Nol for the building will be
Ann wants to buy a building with an asking price of $3,000,000 (this is also the value). The annual Nol for the building will be $165,000 in year 1. She wants to get a 30 year, fully amortizing, fixed rate mortgage at an annual rate of 4.35% with monthly compounding and monthly payments. The lender has a minimum debt service coverage ratio requirement of 1.25. The lender also has a maximum LTV threshold of 70%. What is the largest mortgage the lender will give Ann based on both the LTV and DSCR requirements? O $2,209,670.43 O $2,100,000 $132,000 O $2,250,000 4 points Save Answer Click Save and Submit to save and submit. Click Save All Answers to save all answers
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started