(2) Fill in the second sheet (titled "underwriting"). Where it says "Income Test", compute the biggest mortgage payment Ann can make given her NOI in 2015 computed above. NOI NOI Recall from slides 12: 1.20, which implies the maximum PMT= 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 10 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 with a $1,400,000 down payment and 95% maximum LTV? NOTE: you may use the formula Maximum Loan = ((LTV)/(1-LTV)) *Down payment. (2.d) Assume for the rest of the question that Ann will make a $1,400,000 down payment. How much will Ann need to borrow? (2.e) What will Ann's annual debt service payment be? A 1 Inputs 2 Annual Interest Rate 3 Minimum DSCR 4 Maximum LTV 5 Downpayment 6 Asking Price 7 NOI 2015 8 9 10 11 12 13. 14 15 16 17 18 19 20 21 22 B C 5.75% 10 loan, 5-year balloon Income Test 1.20 95% $1,400,000.00 $11,822,261.54 $768,447.00 D Maximum Annual Mortgage Payment Maximum Loan Amount Collateral Test Maximum Loan Amount w/ downpayment Both tests Maximum Loan Amount Debt Service Payment Ann makes a $1,400,000 downpayment Loan amount to buy the property Debt Service Payment E $11,231,148.46