1)Suppose you make $65,000/year. You want to purchase a $380,000 house with a 80%LTV loan. The current 30-year FRM interest rate is at 4.5%. Your monthlyinsurance and property tax payment add up to $250. The lender allows a maximumTotal Housing Expenses (including your mortgage payment) to Income rate of 35%.Will you qualify for this loan?
2) The asking price for theproperty is $1,000,000; rents are estimated at $200,000 during the first yearand are expected to grow at 5 percent per year. Vacancies and collection lossesare expected to be 10% of rents. Operating expenses will be 35 percent ofeffective gross income. A 10-year FRM loan for 70 percent of the purchase pricecan be obtained at 6 percent interest rate. The property is expected toappreciate in value at 5 percent per year and is expected to be owned for fiveyears and then sold.
a. Calculate the before tax cash flows for each year1 through 5.
求助英语好的大大们T T
2) The asking price for theproperty is $1,000,000; rents are estimated at $200,000 during the first yearand are expected to grow at 5 percent per year. Vacancies and collection lossesare expected to be 10% of rents. Operating expenses will be 35 percent ofeffective gross income. A 10-year FRM loan for 70 percent of the purchase pricecan be obtained at 6 percent interest rate. The property is expected toappreciate in value at 5 percent per year and is expected to be owned for fiveyears and then sold.
a. Calculate the before tax cash flows for each year1 through 5.
求助英语好的大大们T T
