/mortgage_analysis

Understand the APR calculation and find the most cost effective additional monthly principal

Primary LanguagePythonMIT LicenseMIT

mortgage_analysis

Understand the APR calculation and find the most cost effective additional monthly principal

Different underwriting criteria

  • Cap Rate

    • Cap Rate = (Net Operating Income)/(Current Fair Market Value)
    • Ref: Rf1

  • 50% Rule

    • The 50% rule in real estate says that investors should expect a property’s operating expenses to be roughly 50% of its gross income.
    • Ref: Rf1

  • Cash on Cash Return

    • The cash on cash return is the cash flow after ALL expenses (including debt service) divided by the total cash invested.
    • Ref: Rf1

  • Debt Coverage Ratio

    • This is a ratio most often used by banks to determine the risk level of the building if they were to grant a loan to you.
    • Ref: Rf1

ML projects

  • Property Valuation Assessment

Examples

There are 2 examples simulating the following amortization schedule

  1. Personal Loan Simulation [Link]
  2. Mortgage Early Payment Simulation [Link]