Question 14 of 14
Investment Property Mortgage Loan
A buyer is preparing to write an offer on a property for $4,500,000 and wants to put down only 20%.
The best available conventional loan provides for a 70% LTV at 7.5% interest with a 25-year amortization.
The buyer asks that the seller carry an interest-only 2nd trust deed for the difference.
The lender’s debt service coverage requires that the total combined payments not exceed $26,650 per month.
What is the maximum the interest rate the seller could charge on the 2nd Lien to keep the buyer’s total monthly payment at $26,650?