You are developing a property and need to take out a construction loan. Loan terms are...

 

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You are developing a property and need to take out a construction loan. Loan terms are as follows: Construction Cost (excluding loan interest): $1,950,000 Loan-to-Cost (LTC): Construction Period: Average Outstanding Loan Balance: Annual Interest Rate: What is the amount of equity you need? 70% 12 months 50% 5% Answer the following (Round your answer to the nearest whole dollar): What is the sum of all your interest payments? You are developing a property and need to take out a construction loan. Loan terms are as follows: Construction Cost (excluding loan interest): $1,950,000 Loan-to-Cost (LTC): Construction Period: Average Outstanding Loan Balance: Annual Interest Rate: What is the amount of equity you need? 70% 12 months 50% 5% Answer the following (Round your answer to the nearest whole dollar): What is the sum of all your interest payments?

Answer rating: 100% (QA)

To calculate the amount of equity you need you can use the LoantoCost LTC ratio The LTC ratio repres... View the full answer