Mortgage Constant [2943]

The building sold for $18,000,000.  The loan term was 15 years and the LTV was 70%.  The annual mortgage payment is $1,563,142.  What is the mortgage constant?

Mortgage Amount = $18,000,000 x 0.70 = $12,600,000

Mortgage Constant = Annual Debt Service ÷ Principal amount of mortgage

Mortgage Constant = $1,563,142 ÷ $12,600,000 = 0.124059

The term of the mortgage is irrelevant to this problem.