Free Debt Yield Ratio Calculator
This free download is far more than just some easy-to-use Debt Yield Calculator. It will actually teach you WHY some commercial lenders now compute a Debt Yield Ratio, and it also teaches you what the result actually means. We use plain, everyday English so that property owners and investors can easily understand.
If you are a commercial mortgage broker, you desperately need to learn this relatively new commercial mortgage underwriting ratio so you don't sound like an idiot (sorry) when trying to negotiate larger commercial loans.
By the time you have studied and used this free Debt Yield Calculator, you will be able to say, "Listen, Mr. Conduit Lender, I did the Debt Yield Ratio calculation myself. This deal qualifies for a $7.87 million loan, not the lousy $7.25 million loan you are offering me."
You see, commercial real estate lenders no longer rely on just the Loan-to-Value Ratio and the Debt Service Coverage Ratio to compute their maximum loan amount. Instead, the new Debt Yield Ratio is often the limiting factor as to how much money you can borrow.
For example, you might be able to qualify for a $5 million new commercial loan based solely on the Loan-to-Value Ratio. The Debt Service Coverage Ratio might slightly cut that loan back to just $4.85 million.
What might really kill you, however, is the Debt Yield Ratio. The Debt Yield Ratio may cut your loan all the way back to just $4.3 million. Yikes!
This free calculator will help you to finally understand this new ratio, and it will allow you to quickly calculate your maximum loan size under this new ratio. Don't be a confused borrower being lead to slaughter. Instead, download this free calculator so you can battle intelligently for a larger loan amount.