Loaned on property whose net operating income

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Reference no: EM131320450

1. Consider a 6.5% loan amortizing at a 20-year rate with monthly payments. What is the maximum amount that can be loaned on a property whose net operating income (NOI) is $1,000,000 per year, if the underwriting criteria specify a debt service coverage ratio (DCR) no less than 120%?

$69,444

$8,000,000

$9,314,236

$11,177,084

2. Consider a 30-year (monthly-payment), 6%, $300,000 mortgage with 3 points prepaid interest up front. What is the yield to maturity?

5.87%

6.00%

6.29%

6.50%

Reference no: EM131320450

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