Question
For Questions 2 and 3: An office property was sold/bought for $435,000, while it was appraised at $425,000. The NOI in year one is projected
For Questions 2 and 3: An office property was sold/bought for $435,000, while it was appraised at $425,000. The NOI in year one is projected to be $31,370. The bank is willing to lend up to 75% LTV. Regardless of the LTV, the borrower decides to borrow $295,000 at an interest rate of 7% on a 25 year term.
2. The maximum loan amount per the underwriting guidelines is $318,750
True/False
3. The DSCR on the actual loan the borrower took out is 1.3 (Note: loan amount is $295000)
True/False
4.When lenders charge discount points on a residential loan, what impact does this have on the loan's rate? What impact does this have on the APR relative to the new rate?
A.The rate on the loan will decrease and the APR will increase relative to the new rate.
B.The rate on the loan will increase and the APR will decrease relative to the new rate.
C.The rate on the loan will be unaffected.
D.The rate on the loan will be increase and the APR will increase.
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