The mortgage calculator considers a host of criteria including the interest
rate, amortization period, cap rate, NOI, LTV, DSCR and DY to efficiently
calculate a potential loan amount, payment, and total costs.
Asset Financials
?
Annual income generated minus expenses incurred from
operations ?
?
Rate of return on a real estate investment property based on the
income that the property is expected to generate; Varies for different properties/markets
?
?
Property value
?
Sizing Assumptions
?
Annual Fixed Interest Rate for this loan Ex: 4%
?
?
The length of time you agree to pay back your loan.
?
?
The period of time it takes to pay off debt with a fixed repayment
schedule in regular installments. The most common mortgage terms are 25 and 30 years. ?
Please input a number larger than 0. The typical length is 30 years.
?
Period where the borrower is required to pay only the interest on the loan
?
?
Closing costs are typically anywhere from 4-7% of the loan amount based on location, loan amount, etc.
?
?
Loan amount divided by property value - up to 80%
?
?
Net operating income divided by mortgage payment/debt service; typical DSCR is 1.25x (certain loans can go down to 1.15x)
?
?
NOI/Loan Amount- typical debt yield is 7-10%
?
Sizing Results
*Final Max Loan is taken from the minimum of the maximum LTV, DSCR and DY.
Underwriting
?
Property level cash flow after debt service.
?
?
Cash on Cash: Net Cash Flow (Net Operating Income minus Debt Service) /
Equity (includes closing costs)
?