mortgage_analysis

Understand the APR calculation and find the most cost effective additional monthly principal

Different underwriting criteria

• Cap Rate

  • Cap Rate = (Net Operating Income)/(Current Fair Market Value)
  • Ref: Rf1

• 50% Rule

  • The 50% rule in real estate says that investors should expect a property’s operating expenses to be roughly 50% of its gross income.
  • Ref: Rf1

• Cash on Cash Return

  • The cash on cash return is the cash flow after ALL expenses (including debt service) divided by the total cash invested.
  • Ref: Rf1

• Debt Coverage Ratio

  • This is a ratio most often used by banks to determine the risk level of the building if they were to grant a loan to you.
  • Ref: Rf1

ML projects

• Property Valuation Assessment
  • Rf1

Examples

There are 2 examples simulating the following amortization schedule

1. Personal Loan Simulation [Link]
2. Mortgage Early Payment Simulation [Link]