Question 1 4 pts You decide to buy a 60 unit apartment complex in Austin for $15,000,000. You have $6,000,000 to use as a down payment and have applied for a $9,000,000 mortgage loan from Bank of the Ozarks. The loan will have a 25 year term, be fully amortizing, and have fixed interest rate of 6.24% per annum. What is your monthly payment on the loan? $54,731.69 @ $59.314.62 $65.731.09 $98,857.71 Question 2 4 pts In your analysis of the projected cash flow before debt service from the apartment complex, you determine that you can afford debt service payments of $70,000 per month. How much can you borrow from Bank of the Ozarks under the payment terms in Problem #1? $8.345,328.13 $9.000.000.00 $10,621,326.71 $11. 287.718.98 Question 3 4 pts In your analysis of the projected cash flow before debt service you determine that you can afford debt service payments of $55,000 per month. How much can you borrow from Bank of the Ozarks under the payment terms in Problem #12 $8.345,328.13 $9.000.000.00 $10.621,326.71 $11. 287.718.98 Question 4 4 pts Bank of the Ozarks is going to charge you a 2 point origination fee on the $9,000,000 loan described in Problem #1. What is Bank of the Ozarks' yield on this loan if you pay it off over its full term? 5.3896 6.2496 6.4696 6.9496 Question 5 4 pts If Bank of the Ozarks charges you a 2 point origination fee on the $9,000,000 loan described in Problem #1, what would the lender's yield be if you pay off the loan in 10 years? 6.2496 6.4696 6.5496 8.2096 Question 6 4 pts If Bank of the Ozarks charges you a 2 point origination fee on the $9,000,000 loan described in Problem #1, what would the lender's yield be if you pay off the loan in 18 months? 6.2496 7.6796 8.2096 9.3496 Question 7 4 pts In addition to the 2 point origination fee that the Bank will charge you on the $9,000,000 loan described in Problem #1, you are also going to have to pay a $220,000 advisory fee to HFF for helping you obtain the loan from the Bank of the Ozarks. What is your effective borrowing cost (EBC) on this loan if you pay it off over its full term? 6.1996 6.2496 6.4696 6.7396 Question 8 4 pts In addition to the 2 point origination fee that the Bank will charge you on the $9,000,000 loan described in Problem #1, you are also going to have to pay a $220,000 advisory fee to HFF for helping you obtain the loan from the Bank of the Ozarks. What is your EBC if you sell the building after 7 years and pay off the loan at the sale? 6.2496 o 7.10% 8.7696 9.4796 Question 9 4 pts In addition to the 2 point origination fee that the Bank will charge you on the $9,000,000 loan described in Problem #1, you are also going to have to pay a $220,000 advisory fee to HFF for helping you obtain the loan from the Bank of the Ozarks. What is your EBC if you sell the building after 18 months and pay off the loan at the sale? 6.2496 o 7.10% 8.7696 9.4796 Question 10 4 pts Suppose you take out the following loan to finance the purchase of your new mansion: $2,750,000, 25-year term, fully amortizing, at a 3% interest rate. What is the lender's yield if it charges two discount points and you use the entire 25 year term to pay off the loan? 2.8296 O 2.9596 3.00% 3.1896 Question 11 4 pts What is your EBC on the loan described in question #10 if, in addition to the two discount points, you paid $10,000 in closing costs and you sell the house after 7 years and pay off the loan at the sale? 3.0096 3.1896 3.35% 3.4296 D Question 12 4 pts What is your EBC on the loan described in question #10 if you pay the loan off in 12 years? (Note, you'll still incur the $10,000 in closing costs to close the deal.) 3.1896 3.2496 3.2996 3.4296 D Question 13 4 pts What is your EBC on the loan described in question #10 if you sell the house after 36 months and pay off the loan at the sale? (Note, you'll still incur the $10,000 in closing costs to close the deal.) 3.7496 3.8796 4.2696 4.5396 D Question 14 4 pts Suppose the bank gives you another option for a 30-year loan at a 3.3% interest rate. Will monthly payments for this option (Option 2) be higher or lower than the monthly payments for the original loan (Option 1)? Option 2 monthly payments higher than Option 1 monthly payments Option 2 monthly payments lower than Option 1 monthly payments D Question 15 4 pts Your parents are interested in buying a new house for $600,000 and need your help. They want to put $100.000 down and obtain a $500,000, 30-year fully amortizing loan with an annual rate of 4.2%. The lender is going to charge them a 1 point origination fee and 2 discount points. Last minute, you find out that they will also incur $3,000 in closing costs to close the deal. What will your parents' monthly payment be? $2,357.06 $2.371.73 $2.445.09 $2.934.10 Question 16 4 pts What is your parents' EBC if they pay off the loan over the full 30 years? 3.7696 4.2096 4.4696 4.5196 Question 17 4 pts What is your parents' EBC if they pay off the loan in 10 years? 4.2096 4.6196 4.7096 6.3696 Question 18 4 pts What is your parents' EBC if they pay off the loan in 3 years? 4.3196 5.5496 5.7096 6.3696 Question 10 D Question 19 4 pts What is the lender's yield if the loan is paid off in 30 years? 3.76 4.2096 4.4696 4.5196 Question 20 4 pts What is the lender's yield if the loan is paid off in 10 years? 4.20% 4.6196 4.7096 6.3696 D Question 21 4 pts What is the lender's yield if the loan is paid off in 3 years? 5.3196 5.5496 5.70% 6.3696 D Question 22 4 pts Your parents' lender offers the following alternative: instead of charging 2 discount points and a 1 point origination fee, the lender will only charge 1 discount point and no origination fee, but will increase the interest rate to 5.16%. What is the monthly payment? $2.445.09 $2.634.82 $2.733.21 $3.297.20 Question 23 4 pts What is your parents' EBC under the new loan conditions if they pay it off in 6 years? (Note, they'll still incur the $3,000 in closing costs to close the deal.) 5.4996 5.64% 5.7596 5.8496 Question 24 4 pts What is your parents' EBC under the new loan conditions if they pay it off in 16 years? (Note, they'll still incur the $3,000 in closing costs to close the deal.) 5.3396 5.7396 5.8496 6.0296 Question 25 4 pts Your parents decide to borrow under the terms in #22. After making payments for 64 months, they default and the lender forecloses on their house. If the lender receives $375,000 for the house at the foreclosure sale, what is the amount of the deficiency, if any, the lender can sue them to recover? $0 $82,138 $93.345 $116,605 Question 1 4 pts You decide to buy a 60 unit apartment complex in Austin for $15,000,000. You have $6,000,000 to use as a down payment and have applied for a $9,000,000 mortgage loan from Bank of the Ozarks. The loan will have a 25 year term, be fully amortizing, and have fixed interest rate of 6.24% per annum. What is your monthly payment on the loan? $54,731.69 @ $59.314.62 $65.731.09 $98,857.71 Question 2 4 pts In your analysis of the projected cash flow before debt service from the apartment complex, you determine that you can afford debt service payments of $70,000 per month. How much can you borrow from Bank of the Ozarks under the payment terms in Problem #1? $8.345,328.13 $9.000.000.00 $10,621,326.71 $11. 287.718.98 Question 3 4 pts In your analysis of the projected cash flow before debt service you determine that you can afford debt service payments of $55,000 per month. How much can you borrow from Bank of the Ozarks under the payment terms in Problem #12 $8.345,328.13 $9.000.000.00 $10.621,326.71 $11. 287.718.98 Question 4 4 pts Bank of the Ozarks is going to charge you a 2 point origination fee on the $9,000,000 loan described in Problem #1. What is Bank of the Ozarks' yield on this loan if you pay it off over its full term? 5.3896 6.2496 6.4696 6.9496 Question 5 4 pts If Bank of the Ozarks charges you a 2 point origination fee on the $9,000,000 loan described in Problem #1, what would the lender's yield be if you pay off the loan in 10 years? 6.2496 6.4696 6.5496 8.2096 Question 6 4 pts If Bank of the Ozarks charges you a 2 point origination fee on the $9,000,000 loan described in Problem #1, what would the lender's yield be if you pay off the loan in 18 months? 6.2496 7.6796 8.2096 9.3496 Question 7 4 pts In addition to the 2 point origination fee that the Bank will charge you on the $9,000,000 loan described in Problem #1, you are also going to have to pay a $220,000 advisory fee to HFF for helping you obtain the loan from the Bank of the Ozarks. What is your effective borrowing cost (EBC) on this loan if you pay it off over its full term? 6.1996 6.2496 6.4696 6.7396 Question 8 4 pts In addition to the 2 point origination fee that the Bank will charge you on the $9,000,000 loan described in Problem #1, you are also going to have to pay a $220,000 advisory fee to HFF for helping you obtain the loan from the Bank of the Ozarks. What is your EBC if you sell the building after 7 years and pay off the loan at the sale? 6.2496 o 7.10% 8.7696 9.4796 Question 9 4 pts In addition to the 2 point origination fee that the Bank will charge you on the $9,000,000 loan described in Problem #1, you are also going to have to pay a $220,000 advisory fee to HFF for helping you obtain the loan from the Bank of the Ozarks. What is your EBC if you sell the building after 18 months and pay off the loan at the sale? 6.2496 o 7.10% 8.7696 9.4796 Question 10 4 pts Suppose you take out the following loan to finance the purchase of your new mansion: $2,750,000, 25-year term, fully amortizing, at a 3% interest rate. What is the lender's yield if it charges two discount points and you use the entire 25 year term to pay off the loan? 2.8296 O 2.9596 3.00% 3.1896 Question 11 4 pts What is your EBC on the loan described in question #10 if, in addition to the two discount points, you paid $10,000 in closing costs and you sell the house after 7 years and pay off the loan at the sale? 3.0096 3.1896 3.35% 3.4296 D Question 12 4 pts What is your EBC on the loan described in question #10 if you pay the loan off in 12 years? (Note, you'll still incur the $10,000 in closing costs to close the deal.) 3.1896 3.2496 3.2996 3.4296 D Question 13 4 pts What is your EBC on the loan described in question #10 if you sell the house after 36 months and pay off the loan at the sale? (Note, you'll still incur the $10,000 in closing costs to close the deal.) 3.7496 3.8796 4.2696 4.5396 D Question 14 4 pts Suppose the bank gives you another option for a 30-year loan at a 3.3% interest rate. Will monthly payments for this option (Option 2) be higher or lower than the monthly payments for the original loan (Option 1)? Option 2 monthly payments higher than Option 1 monthly payments Option 2 monthly payments lower than Option 1 monthly payments D Question 15 4 pts Your parents are interested in buying a new house for $600,000 and need your help. They want to put $100.000 down and obtain a $500,000, 30-year fully amortizing loan with an annual rate of 4.2%. The lender is going to charge them a 1 point origination fee and 2 discount points. Last minute, you find out that they will also incur $3,000 in closing costs to close the deal. What will your parents' monthly payment be? $2,357.06 $2.371.73 $2.445.09 $2.934.10 Question 16 4 pts What is your parents' EBC if they pay off the loan over the full 30 years? 3.7696 4.2096 4.4696 4.5196 Question 17 4 pts What is your parents' EBC if they pay off the loan in 10 years? 4.2096 4.6196 4.7096 6.3696 Question 18 4 pts What is your parents' EBC if they pay off the loan in 3 years? 4.3196 5.5496 5.7096 6.3696 Question 10 D Question 19 4 pts What is the lender's yield if the loan is paid off in 30 years? 3.76 4.2096 4.4696 4.5196 Question 20 4 pts What is the lender's yield if the loan is paid off in 10 years? 4.20% 4.6196 4.7096 6.3696 D Question 21 4 pts What is the lender's yield if the loan is paid off in 3 years? 5.3196 5.5496 5.70% 6.3696 D Question 22 4 pts Your parents' lender offers the following alternative: instead of charging 2 discount points and a 1 point origination fee, the lender will only charge 1 discount point and no origination fee, but will increase the interest rate to 5.16%. What is the monthly payment? $2.445.09 $2.634.82 $2.733.21 $3.297.20 Question 23 4 pts What is your parents' EBC under the new loan conditions if they pay it off in 6 years? (Note, they'll still incur the $3,000 in closing costs to close the deal.) 5.4996 5.64% 5.7596 5.8496 Question 24 4 pts What is your parents' EBC under the new loan conditions if they pay it off in 16 years? (Note, they'll still incur the $3,000 in closing costs to close the deal.) 5.3396 5.7396 5.8496 6.0296 Question 25 4 pts Your parents decide to borrow under the terms in #22. After making payments for 64 months, they default and the lender forecloses on their house. If the lender receives $375,000 for the house at the foreclosure sale, what is the amount of the deficiency, if any, the lender can sue them to recover? $0 $82,138 $93.345 $116,605