A property with an 10% unlevered IRR has an 70% LTV mortgage with an interest rate of

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A property with an 10% unlevered IRR has an 70% LTV mortgage with an interest rate of 7.0% has Levered/Equity IRR of 17.0%. A new lender will charge 9.0% for an 90% LTV loan.

What is the incremental cost of borrowing on the new higher LTV loan?

Related Book For answer-question

Real Estate Finance and Investments

ISBN: 978-0073377339

14th edition

Authors: William Brueggeman, Jeffrey Fisher

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Posted Date: May 02, 2023 08:08 AM

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A property with an 10% unlevered IRR has an 70% LTV mortgage with an interest rate of

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