Question: A property value is $4,000,000, and it has a $3,000,000 loan on it. The annual net operating income is $220,000. When its time to refinance,

A property value is $4,000,000, and it has a $3,000,000 loan on it. The annual net operating income is $220,000.

When its time to refinance, with an interest rate of 4.00% and a 30-year amortization schedule, what is the loan amount the borrower will be able to get based on a 1.25 minimum debt service coverage ratio?

a) $4,400,000

b) $3,000,000

c) $3,072,098

d) $3,071,553

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