Question: PLEASE PROVIDE EXCEL WORK SHEET SOLUTIONS. You are a Loan Officer with an I nvestment Bank. Today you need to set your lending parameters. They

PLEASE PROVIDE EXCEL WORK SHEET SOLUTIONS. You are a Loan Officer with an Investment Bank. Today you need to set your lending parameters. They are:

LTV:55%

10 Year T-Bill:TBD

Rate Markup:300 Basis Points

Term:30 Years

Amortization:30 Years

A small investment company is buying an investment property. The terms are:

Cash Flow:$410,000

Cap Rate:5.87%

1. What is the interest rate?
2. What is the price?
3. What is the annual debt payment?
4. What is the mortgage constant?
5. Does the debt create positive or negative financing?
6. As a lending officer, would you do this loan? Why?

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