End of Chapter 20 Questions and Answers

Answer: $1,500,000/1.2/12 = $104,166.67 for payments that support $12,412,669 for a 9% 25 year amortization. The 5 year balloon does not factor into the calculation nor will the LTV unless the appraised value is less than $16,550,225 in which case the LTV will limit the loan to less than that supportable by the income and debt coverage ratio. 4. ................
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