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The Loan Life Cover Ratio (LLCR) is one of the most commonly used debt metrics in Project Finance. Unlike period-on-period measures such as the Debt Service Cover Ratio (DSCR) it provides an analyst with a measure of the number of times the cashflow over the scheduled life of the loan can repay the outstanding debt balance.
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What is loan loss reserves coverage ratio?
On the high side 15 bips of the loan amount should be set aside for loan loss reserves. example a $100,000. loan amount $150.00 should be set aside for the llr.
Can title insurance be transferred when refinancing a mortgage?
Typically, a Loan/Mortgage policy cannot be transferred to a new loan as the title coverage is unique to each loan. The mortgage coverage on a loan ends when the loan is paid off and satisfied, that is why new coverage is taken out on the new loan. However, in the case of a Mortgage Modification of an existing loan, the coverage may be extended to cover the existing loan and the new loan amount of the Modification. There would still be title charges for the changes in the Mortgage Modification coverage in most cases.
How can you have MMI insurance cancelled on a FHA fixed rate mortgage?
On FHA there is no cancellation on the MMI insurance. It is life of loan coverage.
How do you calculate debt service coverage ratio of a firm?
Debt Service Coverage Ratio = Interest payable on debt/Net Profit
How would one calculate a loan to value ratio?
A loan value ratio can be calculated by using various online calculators. You can also have an official accountant or lawyer help you calculate the loan to value ratio.
What is loan loss reserves coverage ratio?
On the high side 15 bips of the loan amount should be set aside for loan loss reserves. example a $100,000. loan amount $150.00 should be set aside for the llr.
What is the difference between interest coverage ratio and debt coverage ratio?
Interest coverage ratio, is net operating income + accrual/ interest That is whether the company can cater for the interest portion.
What is the maximum loan amount you can borrow on an income producing property after you know the debt to income service ratio?
The answer will vary based on the lender, the loan terms including interest rate and other variables. There is no one answer. The debt service to income ratio provides an indication and can be an easy way to screen in or out specific loan programs. Most commercial transactions will look for a debt service coverage ratio (DSCR).
Can title insurance be transferred when refinancing a mortgage?
Typically, a Loan/Mortgage policy cannot be transferred to a new loan as the title coverage is unique to each loan. The mortgage coverage on a loan ends when the loan is paid off and satisfied, that is why new coverage is taken out on the new loan. However, in the case of a Mortgage Modification of an existing loan, the coverage may be extended to cover the existing loan and the new loan amount of the Modification. There would still be title charges for the changes in the Mortgage Modification coverage in most cases.
Which type of insurance reduced over the life of the policy?
Decreasing term life insurance usually purchased to cover a mortgage loan for whatever the loan period is. This type of coverage is not available by most life insurance companies.
How can you have MMI insurance cancelled on a FHA fixed rate mortgage?
On FHA there is no cancellation on the MMI insurance. It is life of loan coverage.
How do you calculate debt service coverage ratio of a firm?
Debt Service Coverage Ratio = Interest payable on debt/Net Profit
What determines difference coverage amounts for Private mortgage insurance?
The amount of your down payment. Also called your "Loan to Value" ratio. FNMA & FHLMC has set amounts required for coverage based on that. 3, 5, 10 & 15 % downpayments require different coverage amounts...the more you put down the lower your coverage requirement & your premium.
How would one calculate a loan to value ratio?
A loan value ratio can be calculated by using various online calculators. You can also have an official accountant or lawyer help you calculate the loan to value ratio.
What are the guidelines for investing in real estate?
Note down the Rate of capitalizationConsider the Debt Coverage Ratio(DCR)Count on the Loan To Value (LTV) ratioCheck the Cash flow and return on investment
What is the definition of 125 Loan?
A loan, usually a mortgage, with an initial loan amount equal to 125% of the initial property value. In other words, a 125% loan has a loan-to-value ratio (LTV ratio) of 125%.
What coverage should you get for a 2001 car?
If you have a loan on it, you'll need full coverage. If you do not have a loan, I'd suggest liability coverage for price. If you live in a busy city, get full coverage, as accidents do happen. Consult an insurance agent to see what is best for your situation.
