Ch.16-Web Assignment-pg446 - • According to Bloomberg the...

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Chapter 16: Commercial Mortgage Types and Decisions Robb Page 25-Mar-2010 FIN 497: Real Estate Principles Professor Clements Explore the Web – page 446. 1. Visit http://www.ired.com click on Mortgage Finance. Select your State from the map, click on Commercial Mortgages and Apartment Loans from RealWeb-Funds , and then click on Commercial Loan Indices . NOTE : This path of links is broken and is no longer searchable via their site map . In an effort to complete the assignment, a Google search was conducted for “Commercial Mortgage” and the following questions were answered based on the info garnered from each respective website: a. What is the current yield on 1, 5, and 10-year Treasury securities and what have been the trends in these yields over the last year? (http://www.bloomberg.com/markets/rates/index.html) 12-month yield: .40 5-year yield: 2.62 10-year yield: 3.86
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Unformatted text preview: • According to Bloomberg, the rates have remained flat. b. How do current rates on a prototypical fixed-rate loan vary across property types? (http://www.caffreyloans.com/) Kansas City based commercial mortgage broker • Rates based on a $2 million loan, 25 year amortization, 10-year fixed rate term, with an option for 30 year amortization on apartment complexes, are as low as 5.86% for an Apartment Complex, and up to 9.84% for undeveloped land. c. How sensitive are rates to the original loan-to-value ratio? • Unable to answer this question. Most likely due to the absence of a particular data table (for comparison). Search engine queries yielded nothing relevant (or on this specific point), even when simplifying or rephrasing the question. d. Fill in the required info to submit for a hypothetical loan… See Attachment. 1...
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