Setting up the First

Enter the date that the first mortgage begins.  More often than not, this date will be the same as the analysis start date.  However, there may be an instance where you want to pay cash for the property - stabilize it, then place a first mortgage.  This provision allows for that option.

Enter the loan to value ratio for this loan.  The pull down window next to the LTV driver lets you choose how to base the value for the loan.  You can choose to base the loan on the Sales Price, the Current Value, or the Stabilized value.  Check with your lender before taking the Stabilized Value option, as some do not offer this option.

Enter the term for this loan in months.  This is not the number of months until the loan balloons, this is the number of months over which the loan will amortize.  For example, you may have a 20 year loan that balloons in 5.  In that case you would enter 240, and then balloon the loan with a refinance in year 5.

Enter the number of months (if any) that this loan will have an interest only provision.  If none, enter 0.

Enter the interest rate for this loan.  The Instant Analyst will not perform variable rate calculations like the main model, so this rate will be constant.

Enter the total number of loan points for this loan.

Enter the  total number of months to amortize the loan points - this is typically for the life of the loan.  The model will recapture unamortized loan points at the time of resale.