Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

How would you calculate the available loan payments on a property that generated $3200/month net operating income and banker that required a 1.2 debt coverage

How would you calculate the available loan payments on a property that generated $3200/month net operating income and banker that required a 1.2 debt coverage ratio. If the loan was 5% interest rate and 20-year term, what would the value (Principle) of the loan be? You will need software or financial calculator or App for this. You are simply calculating the payment the bank will let you afford then solving for the Principal (P).

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Stock Market Investing For Beginners

Authors: George Graham

1st Edition

1914346432, 978-1914346439

More Books

Students also viewed these Finance questions

Question

2. What are your challenges in the creative process?

Answered: 1 week ago