You are interested in obtaining a mortgage on a property that has been appraised at $6,000,000. The Net Operating Income is $390,000. The lender is willing to give you a mortgage with a maximum LTV of 70% and a minimum DSCR of 1.25. The lender is offering you an interest rate of 4.50% with 25- year amortization. Answer the following questions in the text boxes provided.

1. What is the maximum loan based on appraised value and the lender's LTV requirements?

2. If you were to obtain that maximum loan amount, what would be the total annual debt service. (Remember, calculate monthly debt service first and then multiply by 12.)

3. What would be the Debt Service Coverage Ratio (DSCR) based on your answers to 1 and 2? Round the DSCR to 2 decimal places.

4. Would that satisfy the lender's minimum DSCR requirement?