Question 13

[Note: The information presented here applies to questions 13 - 15] You are purchasing an office building in Brooklyn for $12M and finance the acquisition with a $7.2M senior mortgage with a 5.5% interest rate. The loan has a 10-year term and 25-year amortization period. Assuming payments are made on an annual basis, what is the scheduled payment for this mortgage?

Question 14

What is the balance due at maturity?

Question 15

If you pay an origination fee of $80,000 at closing, what is the effective cost of borrowing associated with this loan assuming you hold the loan to maturity?