how is debt yield calculated?

In General Area - Asked by Vern M. - Feb 15, 2011
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Jeremy C.
Andover, MA

The debt yield, or the lenders effective yield, is merely a time value money calculation involving the lender's loan amount, reduced by any discount points, payments received over the holding period, and maturity payoff at the end of the loan term. In Massachusetts commercial real estate, we find that most lenders ask for points and will expect a 5 year term on the loan.

Jul 10, 2011
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