Question
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: TBD
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: TBD Rate Markup: 300 Basis Points Term: 30 Years Amortization: 30 Years A small investment company is buying an investment property. The terms are: Cash Flow: $410,000 Cap Rate: 5.87%
1. What is the interest rate?
2. What is the price?
3. What is the annual debt payment?
4. What is the mortgage constant?
5. Does the debt create positive or negative financing?
6. As a lending officer, would you do this loan? Why?
Step by Step Solution
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Step: 1
To calculate the required information based on the given lending parameters and investment property terms we can follow these steps 1 Calculate the in...
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
