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Mortgage Constant Formula

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Mortgage Constant is a financial metric used in real estate finance to calculate the ratio of annual debt service to the total principal amount of a mortgage loan. Check FAQs

MC = \frac{ADS}{TLA}

MC - Mortgage Constant?ADS - Annual Debt Service?TLA - Total Loan Amount?

Mortgage Constant Example

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Here is how the Mortgage Constant equation looks like with Values.

Here is how the Mortgage Constant equation looks like with Units.

Here is how the Mortgage Constant equation looks like.

3.2128 = \frac{803200}{250000}

3.2128 = \frac{803200}{250000}

3.2128 = \frac{803200}{250000}

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Mortgage Constant Solution

Follow our step by step solution on how to calculate Mortgage Constant?

FIRST Step Consider the formula

MC = \frac{ADS}{TLA}

Next Step Substitute values of Variables

∴

MC = \frac{803200}{250000}

Next Step Prepare to Evaluate

∴

MC = \frac{803200}{250000}

LAST Step Evaluate

∴

MC = 3.2128

Mortgage Constant Formula Elements

Variables

Mortgage Constant

Mortgage Constant is a financial metric used in real estate finance to calculate the ratio of annual debt service to the total principal amount of a mortgage loan.

Symbol: MC

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Mortgage Constant

Annual Debt Service

Annual Debt Service is the total principal and interest payment owed on a financial obligation, such as a commercial mortgage loan, expressed on an annual basis.

Symbol: ADS

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Annual Debt Service

Total Loan Amount

Total Loan Amount is the initial amount of the mortgage loan, which is the total borrowed amount.

Symbol: TLA

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Total Loan Amount

Other formulas in Debt Management category

Go Senior Debt Ratio

SDR = \frac{SD}{EBITDA}

Go Mortgage Refinance Breakeven Point

MRBP = \frac{TLC}{MS}

Go Overhead Rate

OR = \frac{OC}{Rev}

Go Debt Service Coverage Ratio

DSCR = \frac{NOI}{AD}

How to Evaluate Mortgage Constant?

Mortgage Constant evaluator uses Mortgage Constant = Annual Debt Service/Total Loan Amount to evaluate the Mortgage Constant, The Mortgage Constant is a financial metric used in real estate finance to calculate the ratio of annual debt service to the total principal amount of a mortgage loan. Mortgage Constant is denoted by MC symbol.

How to evaluate Mortgage Constant using this online evaluator? To use this online evaluator for Mortgage Constant, enter Annual Debt Service (ADS) & Total Loan Amount (TLA) and hit the calculate button.

FAQs on Mortgage Constant

What is the formula to find Mortgage Constant?

The formula of Mortgage Constant is expressed as Mortgage Constant = Annual Debt Service/Total Loan Amount. Here is an example- 3.212 = 803200/250000.

How to calculate Mortgage Constant?

With Annual Debt Service (ADS) & Total Loan Amount (TLA) we can find Mortgage Constant using the formula - Mortgage Constant = Annual Debt Service/Total Loan Amount.

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Mortgage Constant Formula

Mortgage Constant Example

Mortgage Constant Solution

Mortgage Constant Formula Elements

Other formulas in Debt Management category

How to Evaluate Mortgage Constant?

FAQs on Mortgage Constant

Variable Name