Ten years ago, an office building received a 4 percent interest-only loan with a debt cover ratio of 1.5?Since that time, the income on the property has risen by ten percent?

It now needs to refinance its mortgage with a 6 percent rate and a 40-year amortization?

Keeping the 1.5 DCR, how does the size of the loan the office building receives change?

What is one implication of this?

Answer rating: 100% (QA)

The size of the loan the office building receives will likely increase due to ... View the full answer