1. Consider a 6.5% loan amortizing at a 20-year rate with monthly payments. What is the maximum amount that can be loaned on a property whose net operating income (NOI) is $1,000,000 per year, if the underwriting criteria specify a debt service coverage ratio (DCR) no less than 120%?
$69,444
$8,000,000
$9,314,236
$11,177,084
2. Consider a 30-year (monthly-payment), 6%, $300,000 mortgage with 3 points prepaid interest up front. What is the yield to maturity?
5.87%
6.00%
6.29%
6.50%