If a property had a current NOI of $900,000 and a lender was willing to provide an interest only loan with a minimum Debt Service Coverage Ratio (DSC) of 1.25, the maximum debt service the property could support would be If instead the loan was fully amortizing and the DSC was maintained at 1.25, the amount of debt (mortgage amount) the property could support compared to the interest only loan would be a. $1,125,000, the same b. $720,000, lower c. $720,000, the same d. $1,125,000, higher e. $720,000, higher When evaluating whether you should sell or hold onto a commercial property you own which was financed with a fully amortizing loan, which of the following are TRUE: a. If held, your mortgage payment would decrease going forward b. One rational reason to sell might include the opportunity to diversify into other properties c. If held, the principal component of your payments would decrease going forward d. If held, the interest component of your payments would decrease going forward e. Both B and D