The periodic payments of principal and interest made on a loan.
The ratio is calculated by taking the net operating income and dividing it by the mortgage payments. A ration 1.0 means breakeven. Most lenders look for a ratio of 1.25 or higher.
One of several financial calculations performed by your lender to determine if you can afford a particular monthly payment. The DTI (also known as the obligations ratio) is the sum of all your monthly debt payments including your total monthly mortgage payment divided by your total monthly income. Typically acceptable DTI for Conventional Loan are 36 - 38%, FHA Loans are 41 - 43%, and VA Loans Are 41%.
See Teaser Rate
The part of the purchase price that the buyer pays in cash, up front, and does not finance with a mortgage. Typically between 5-25%.
The legal definition: a measure of prudence, activity or assiduity, as is properly to be expected from, and ordinarily exercised by, a reasonable and prudent person under the particular circumstances. In CMBS: due diligence is the foundation of the process because of the reliance securities investors must place on the specific expertise of the professionals involved in the transaction.