You are a Loan Officer with an Investment Bank. Today you need to set your lending parameters. They are:

LTV: 55%

10 Year T-Bill: 4.47

Rate Markup: 325 Basis Points

Term: 30 Years

Amortization: 30 Years

A small investment company is buying an investment property. The terms are:

Cash Flow: $179,000

Cap Rate: 8.02%

What is the interest rate?

What is the price?

What is the annual debt payment?

What is the mortgage constant?

Does the debt create positive or negative financing?

As a lending officer, would you do this loan? Why?