Archive for the ‘Definition of the Day’ Category

Commercial Mortgage Definition of the Day; Loan-to-Value Ratio

December 4, 2008

Commercial Mortgage Definition of the Day – Loan-to-Value Ratio (LTV): The ratio of the value of the loan principal divided by the property’s appraised value

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Commercial Mortgage Definition of the Day; Due Diligence

December 2, 2008

Commercial Mortgage Definition of the Day; Due Diligence: Activities carried out by a prospective purchaser or mortgager of real property to confirm that the property is as represented by the seller and is not subject to environmental or other problems.

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Definition of the Day; Amortization

November 26, 2008

Commercial Mortgage Definition of the Day; Amortization

Amortization: The liquidation of a financial debt through regular periodic installment payments. For tax purposes, the periodic deduction of capitalized expenses such as organization costs

Definition of the Day

November 25, 2008

Commercial Mortgage Definition of the Day; Debt Service Coverage Ratio

Debt service coverage ratio (DSCR): The annual net operating income from a property divided by annual cost of debt service. A DSCR below 1 means the property is generating insufficient cash flow to cover debt payments.

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