Property Purchase Price: $2,500,000
Appraised Market Value: $2,400,000
Property Net Income Estimate: $160,000 per year
Loan – to – Value Ratio: 70%
Interest Rate: 6.0%
Amortization Period: 25 years
Loan Term: 5 years
Required Debt Coverage Ratio: 1.25 (minimum)
Borrower’s Additional Closing Costs: $25,000
CALCULATE THE FOLLOWING:
1. Loan amount using LTV ratio
2. Monthly Debt Service and Annualized Debt Service
3. Mortgage Constant
4. Balloon Balance due at maturity