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A property value is $4,000,000, and it has a $3,000,000 loan on it. The annual...

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Finance

A property value is $4,000,000, and it has a $3,000,000 loan on it. The annual net operating income is $220,000.

14. When its time to refinance, assuming a future capitalization rate of 5.00%, with an interest rate of 4.00% and a 30-year amortization schedule, what is the loan amount the borrower will be able to get based on a 1.25 minimum debt service coverage ratio and a 75% maximum LTV? a) $4,400,000 b) $3,000,000 c) $3,072,098 d) $3,071,553

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