How much can I afford? The Merchandise Mart!

One of the nice things about being a former loan officer in the mortgage business is that I still remember basic mortgage calculations and in this day and age of the fax machines and air phones, sure, we can figure out mortgage payments through online calculators.  But where’s the fun in that?  Today, we focus on estimated mortgage payments for the Merchandise Mart.  First off, let’s take some assumptions: say the Merchandise Mart is on sale for $1,000,000,000.  That’d mean that the potential loan amount would be listed as a non-conforming “jumbo” loan, since the mortgage payment would be more than $417,000.  Anyway, if you’re looking to buy the Merchandise Mart, you will want to budget for 20% down, or $200,000,000 — bringing your loan amount to $800,000,000.  If you’re able to garner a 30-year fixed mortgage at 5.5% (using today’s estimated market rates for jumbo financing), your basic principal and interest payment would be $4,542,312 per month.  Taking real estate taxes into account (estimating an average 1.5% of the purchase price), let’s assume $1,250,000 per month for the real estate tax bill.  And what about assessments, you might ask?  Well, turns out the Merchandise Mart isn’t a condo association — it’s a Merchandise Mart — so you’ll most likely MAKE some money from some commercial retailers such as your Post Offices and your Jamba Juices.  Long story short — the grand total for your estimated monthly payment would be $5,792,312.  So, there’s that.

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