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What is the most the lender will provide based on condition

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Reference no: EM131891489

You are considering an investment in a small medical office building in Hackensack, NJ. The asking price for the building is $3.5M and a local commercial bank has offered to provide financing in the form of a 5-year mortgage with a 25-year amortization period. The interest rate on the mortgage is 6% and payments are made on an annual basis. If the maximum loan-to-value (LTV) ratio for the loan is 60%, what is the most the lender will provide based on this condition?

Reference no: EM131891489

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