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In a market experiencing a cap rate of 8%, a hotel is valued at 100 mi. A 30-year, monthly amortizing fixed rate mortgage at 7%
| In a market experiencing a cap rate of 8%, a hotel is valued at 100 mi. |
| A 30-year, monthly amortizing fixed rate mortgage at 7% is being considered to finance this hotel. |
| The bank's underwriting criteria include the DSCR of 1.5 and the LTV of 70%. |
| What is the loan principal, based on the two underwriting criteria? |
| What is the actual loan to value ratio for this loan? |
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