Mortgage Calculator

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

NOI

Annual income generated minus expenses incurred from operations ?

Cap Rate

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 ?

Derived Value

Property value ?

Sizing Assumptions

Interest
Rate

Annual Fixed Interest Rate for this loan Ex: 4% ?

Term of Loan
(Years)

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.
?

Period where the borrower is required to pay only the interest on the loan ?

Closing
Costs

Closing costs are typically anywhere from 4-7% of the loan amount based on location, loan amount, etc. ?

Maximum
LTV

Loan amount divided by property value - up to 80% ?

Minimum
DSCR

Net operating income divided by mortgage payment/debt service; typical DSCR is 1.25x (certain loans can go down to 1.15x) ?

Minimum
Debt Yield

NOI/Loan Amount- typical debt yield is 7-10% ?

P&I I/O

DSCR Calculation
Options

Choose to underwrite off of the PI payment or the I/O payment ?

Sizing Results

LTV Max Loan

DSCR Max Loan

DY Max Loan

Derived LTV

DSCR (Year 1)

Debt Yield (Year 1)

Max Loan*

Principal Due at
End of Term

*Final Max Loan is taken from the minimum of the maximum LTV, DSCR and DY.

Underwriting

Equity In

Closing Costs

Total Cash In

Annual Debt Service
(Year 1)

Net Cash Flow

Property level cash flow after debt service. ?

Cash on Cash Return
(Year 1)

Cash on Cash: Net Cash Flow (Net Operating Income minus Debt Service) / Equity (includes closing costs) ?

Cash on Cash

Amortization Schedule

Connect with a Capital Services Broker

Yr 1 Cash on Cash Return Sensitivity Analysis

Amortization Schedule

Capital Services

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Team

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