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ProCash, an Economic Model for Income Properties

The easiest way to input mortgage financing terms is to use the A vector elements 61 through 69 as follows:

first second mortgage mortgage Amount (or loan to value ratio) AVI[61] AVI[65] Interest rate AVI[62] AVI[66] Term in years (0=interest only) AVI[63] AVI[67] Months until balloon AVI[64] AVI[68] Which participant holds mortgage entity 2 AVI[69]

Except in the case of low and moderate income housing, mortgage amount is determined by the value of the project. Mortgage amounts can be entered as a decimal; ProCash© will then calculate mortgage amounts based on value determined with a capitalization rate entered as AVI[112]. The capitalization rate is applied to net available for debt service.

If the capitalization rate (AVI[112]) is zero, and mortgage amounts are entered as decimals, then mortgage amounts will be determined as a decimal of cost. Setting AVI[96] to 1 will also force mortgage amounts to be determined as a function of cost, not value.

input | description | help# | importance | frequency |
---|---|---|---|---|

AVI[61] | 1st mortgage loan to value Ratio or $ Amount | 551 | 3 | |

AVI[62] | 1st mortgage interest rate | 551 | 3 | |

AVI[63] | 1st mortgage term in Years (0=interest only) | 551 | 3 | |

AVI[66] | 2cd mortgage interest rate | 551 | 3 | |

AVI[67] | 2cd mortgage term in years (0=interest only) | 551 | 3 | |

AVI[64] | 1st mortgage months Til Balloon | 551 | 2 | |

AVI[69] | Who provides 2nd mortgage (see AVI[ 65]) | 551 | 2 | |

AVI[68] | 2cd mortgage months til balloon | 551 | 1 |