Assuming the following data, determine the following: You can purchase an office building for $15,000,000. The...

 

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Assuming the following data, determine the following: You can purchase an office building for $15,000,000. The bank has quoted a 60% LTV, and a 1.30 DCR (Debt Coverage Ratio). The loan would be amortized for 30 years, the annual interest rate is 4.5%. The annual NOI is $850,000. a) Determine the maximum amount of the loan based on the LTV b) Determine the monthly payment of the loan using the PMT function in excel c) Determine the DCR-Debt Coverage Ratio d) How large of a loan could you obtain using the Debt Coverage Ratio and LTV as the two factors to consider. Assuming the following data, determine the following: You can purchase an office building for $15,000,000. The bank has quoted a 60% LTV, and a 1.30 DCR (Debt Coverage Ratio). The loan would be amortized for 30 years, the annual interest rate is 4.5%. The annual NOI is $850,000. a) Determine the maximum amount of the loan based on the LTV b) Determine the monthly payment of the loan using the PMT function in excel c) Determine the DCR-Debt Coverage Ratio d) How large of a loan could you obtain using the Debt Coverage Ratio and LTV as the two factors to consider.

Answer rating: 100% (QA)

Information given Office Building value LTV 1500000000 60 Debt Coverage Ratio 13 Amort... View the full answer