(2) Fill in the second sheet (titled "underwriting"). Where it says "Income Test, compute the biggest mortgage payment Ann can make given her Nol in 2015 computed above. NOI NOI Note: > 1.20, which implies the maximum PMT = . This is the debt service coverage test. PMT 1.20 (2.a) What is the biggest mortgage payment the bank will allow Ann to make given her expected NOI in 2015? Using the maximum payment, compute the maximum loan Ann can get. Recall for an lo loan: PMT = (interest rate) x (Loan Balance) The interest rate is given in the spreadsheet. Use the PMT computed in (2.a) (2.b) What is the maximum loan amount corresponding to a DSCR of 1.2? (2.c) What is the biggest loan Ann can get assuming 90% maximum LTV? (2.d) Assume for the rest of the question that Ann will Borrow the maximum available loan amount. What is the loan that Ann borrows to buy the property? (2.e) What will Ann's annual debt service payment be? A B C D E F Inputs Annual Interest Rate Minimum DSCR Maximum LTV Cash Available to Close Asking Price/Value NOI 2015 Income Test Maximum Annual Mortgage Payment Maximum Loan Amount 5.75% 10 loan, 5-year balloon 1.20 90% $1,500,000.00 $0.00 $0.00 Collateral Test Maximum Loan Amount LTV Test Both tests Maximum Loan Amount Debt Service Payment Loan Ann Borrows Loan amount to buy the property Debt Service Payment (2) Fill in the second sheet (titled "underwriting"). Where it says "Income Test, compute the biggest mortgage payment Ann can make given her Nol in 2015 computed above. NOI NOI Note: > 1.20, which implies the maximum PMT = . This is the debt service coverage test. PMT 1.20 (2.a) What is the biggest mortgage payment the bank will allow Ann to make given her expected NOI in 2015? Using the maximum payment, compute the maximum loan Ann can get. Recall for an lo loan: PMT = (interest rate) x (Loan Balance) The interest rate is given in the spreadsheet. Use the PMT computed in (2.a) (2.b) What is the maximum loan amount corresponding to a DSCR of 1.2? (2.c) What is the biggest loan Ann can get assuming 90% maximum LTV? (2.d) Assume for the rest of the question that Ann will Borrow the maximum available loan amount. What is the loan that Ann borrows to buy the property? (2.e) What will Ann's annual debt service payment be? A B C D E F Inputs Annual Interest Rate Minimum DSCR Maximum LTV Cash Available to Close Asking Price/Value NOI 2015 Income Test Maximum Annual Mortgage Payment Maximum Loan Amount 5.75% 10 loan, 5-year balloon 1.20 90% $1,500,000.00 $0.00 $0.00 Collateral Test Maximum Loan Amount LTV Test Both tests Maximum Loan Amount Debt Service Payment Loan Ann Borrows Loan amount to buy the property Debt Service Payment