Lease Percentage Rent Calculation
Study Guide with Solutions
Points - ANSWER Fees charged by lenders, 1 point = 1% of loan amount
Annual Interest - ANSWER Yearly amount paid to borrow money; calculated annually
Loan Payments - ANSWER Monthly amount paid on a loan, includes principal
and interest portions
Amortizing Loan - ANSWER Loan where monthly payment reduces unpaid
balance; principal is paid off completely
Interest-Only Loan - ANSWER Loan where only interest is paid, principal remains
until future payment
T-bar Formula - ANSWER Formula for calculating annual interest
Interest-only Loan - ANSWER Loan paying only interest, not principal
Fully Amortized Loan - ANSWER Loan with fixed payments covering principal and
interest
Loan Principal - ANSWER Initial amount borrowed
, Loan Rate - ANSWER Interest percentage on a loan
Loan Term - ANSWER Duration over which a loan is repaid
Loan Constant - ANSWER Percentage/decimal for mortgage payment calculation
Loan-to-Value Ratio (LTV) - ANSWER Ratio of loan amount to property value
Income Ratio Qualification - ANSWER Method to qualify borrowers based on income
Debt Ratio Qualification - ANSWER Method to qualify borrowers based on debt
Appreciation - ANSWER Increase in property value over time
Total Appreciation - ANSWER Overall increase in property value
Appreciation Rate - ANSWER Percentage increase in property value
Average Appreciation Rate - ANSWER Average annual increase in property value
Loan Payment - ANSWER Monthly amount paid towards a loan
Principal Paid - ANSWER Amount paid towards the loan principal
Interest Paid - ANSWER Amount paid as interest on a loan
Study Guide with Solutions
Points - ANSWER Fees charged by lenders, 1 point = 1% of loan amount
Annual Interest - ANSWER Yearly amount paid to borrow money; calculated annually
Loan Payments - ANSWER Monthly amount paid on a loan, includes principal
and interest portions
Amortizing Loan - ANSWER Loan where monthly payment reduces unpaid
balance; principal is paid off completely
Interest-Only Loan - ANSWER Loan where only interest is paid, principal remains
until future payment
T-bar Formula - ANSWER Formula for calculating annual interest
Interest-only Loan - ANSWER Loan paying only interest, not principal
Fully Amortized Loan - ANSWER Loan with fixed payments covering principal and
interest
Loan Principal - ANSWER Initial amount borrowed
, Loan Rate - ANSWER Interest percentage on a loan
Loan Term - ANSWER Duration over which a loan is repaid
Loan Constant - ANSWER Percentage/decimal for mortgage payment calculation
Loan-to-Value Ratio (LTV) - ANSWER Ratio of loan amount to property value
Income Ratio Qualification - ANSWER Method to qualify borrowers based on income
Debt Ratio Qualification - ANSWER Method to qualify borrowers based on debt
Appreciation - ANSWER Increase in property value over time
Total Appreciation - ANSWER Overall increase in property value
Appreciation Rate - ANSWER Percentage increase in property value
Average Appreciation Rate - ANSWER Average annual increase in property value
Loan Payment - ANSWER Monthly amount paid towards a loan
Principal Paid - ANSWER Amount paid towards the loan principal
Interest Paid - ANSWER Amount paid as interest on a loan
