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The
Mortgage and Equity report summarizes year to year projections for
interest, principal, debt service and the loan balance
for up to 3 mortgages on a property. The sales price
is projected
forward over the ten year period based on the investor's
assumption for appreciation
and the investor's equity
position is calculated. All
loan data projections are based on the loan data
criteria entered by the investor for the property being
analyzed. Note that
the investor's
equity amount for any year includes the down payment amount.
The investor's equity position for each of the 10 years is
calculated by subtracting the loan balance from the projected
sales price. Equity shows the owner's interest in a property
over and above the liens against it.
You can enter up to 3 mortgages on a property. The
mortgages can be fully
amortized, fully amortized with a balloon payment,
interest only or interest only with a balloon payment.
The third
mortgage can be used to enter a loan in the future
(refinancing). This may be helpful if
you plan to take your gains out of the project in the future to purchase
another income property or invest in the
stock market. You can also use the third mortgage to pay
for a future anticipated capital addition such as a new roof.
(c) Copyright 2000 - 2008
Advantage Software LLC
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