How to read this table for loan programs?
&amp;#x200B;

&amp;#x200B;

[https://imgur.com/a/CfUEJrW](https://imgur.com/a/CfUEJrW)

what do these value mean? I basically understand none of what this is trying to tell me.... Help please!

1. LTV / DCR? 
*edit first responder pointed out LTV=loan to value. Thanks!
 -however I still don’t understand where those values are shown on the chart.  

2. Term / Amort?
-what do these numbers mean? Like 7/30? 7 what and 30 what?

3. % / Multipliers?
- what does these mean? Like 65%/1.3x? 65% of what and 1.3x what? 

4. What is Spread? 
-Like 205-210? What do those numbers signify? 
5 Ditto for All-in Rate? Like 4.96-5.01?


What do all the numbers mean in practice? How do I apply the values it is giving me? 

Or please tell me where i can post this for help! Reddit Finance you can't even post questions on... can only post them there to a weekly sticky post for questions which is kinda useless and dumb. Didn't know what other sub Reddit to take this question to since there is no actual out and out finance sub Reddit that takes posted questions. 
[{"id": "edoqcy8", "text": "Loan to Value (Stabilized asset value) and Debt Service Coverage Ratio. \n\nThe rates below that are at the implied loan constants derived from the interest percentage &amp; amortization schedule.\n\nThe spread is likely basis points above the 10-yr Treasury or 1-mo Libor, with the all-in rate being just that... base rate plus spread", "replies": [{"id": "edor83t", "text": "Thank you! But I still don\u2019t understand what the numbers mean, and for LTV/DCR I don\u2019t even see where values for those are shown? \n\nEdited the OP to reflect your input and ask more specially what im trying to understand. ", "replies": [], "depth": 2}], "depth": 1}, {"id": "edorf3r", "text": "Ltv is loan to value \n\nDcr is debt coverage ratio\n\nTerm is the loan term in years\n\nAmor is loan amortization in years\n\n3&amp;4 are the max ltv and dcr for the term/amor option\n\nSpread is the loan spread over the base rate, all in rate is the rate of the loan at the then current base rate. The final rate isn't set until rate lock", "replies": [], "depth": 1}, {"id": "edova7r", "text": "This looks like it has to do with credit default swaps. Which is real estate but not commercial real estate.", "replies": [{"id": "edox929", "text": "No it\u2019s not. These are mortgage loan pricing grids.", "replies": [], "depth": 2}], "depth": 1}, {"id": "edoyxli", "text": "I\u2019m a loan officer at a Lifeco lender. I used to do Fannie loans at my prior company too. I can walk you through this.\n\nThis is a mortgage pricing grid for leverage levels. \n\nLTV means loan to value (loan as a percentage of total value). This is a measure of risk for the lender, so the corresponding numbers in the grid indicate that for higher risk, the lender will charge a higher rate.\n\nThe numbers in the grid represent spread over an  index in basis points (100 = 1%).\n\nFor fixed rate loans, the index is typically the corresponding term US treasury, although CMBS (conduit) is typically quoted over swaps, which is footnoted. In addition, some lenders quote over an interpolated treasury and some over average life treasury, but just assume term for now.\n\nFor floating rate loans, the index is typically 30-day LIBOR. \n\nAll in rate is spread + index. So that is not necessarily your coupon, it will fluctuate until you lock rate. \n\n\nDCR means debt service coverage ratio. This is NOI / debt service and typically quoted as #.##x. For example, if NOI is $500k and debt service is $250k, then your DCR is 2.0x.\n\nThe grid is broken down by LTV / DCR because it\u2019s showing what spread will be charged based on max LTV or min DCR, which ever is limiting. You have to compute both and use whichever loan amount is less, to receive the corresponding spread for that grid. Obviously, a higher DCR / lower LTV will result in better pricing (lower rate).\n\nFixed rate is quoted with a term and amortization schedule. So 10 / 30 means 10 year loan term with a 30 year repayment schedule. This means at the end of year 10, you will have a balloon payment. A 20/20 on the other hand is fully amortizing.", "replies": [{"id": "edrfi3f", "text": "Thank you!! Been studying this most of the day and taking notes.\n\nI get all of it now except the 'Spread' and 'All-in Rate' numbers now. I think you tried to tell me what the spread numbers actually meant;\n\n&gt;The numbers in the grid represent spread over an index in basis points (100 = 1%).\n\nDoes this mean that the spread for the top middle column in the Freddie Max table, 205-210, is for 2.05-2.10% LIBOR? Or what does the 205-210 mean  in practice?\n\nWhat does the All-In Rate reading 4.96-5.01 mean? One of these two, spread or All-in rate, has to be the interest rate for the mortgage right? Which one is it and what does the other mean to tell me?\n\n&amp;#x200B;\n\nI know that the index used in the model I'm looking at is 30 day LIBOR as you suggested. It even says in the spread sheet the 30 day LIBOR is 3.11%. There is also a cell just below that  titled 'spread' that has a value of 4%. However these are just hard coded into cells next to the table and are not used in any calculations when I try and trace dependent cells from them. Which leaves me to assume they are there just so the reader knows which loan in the tables they qualify for and then those corresponding numbers from the table are plugged in to the model by the user in the input cells. But I don't actually know what 'spread' means. I understand LIBOR is an index. But still don't know what they mean or how they affect what I'm seeing. \n\n&amp;#x200B;", "replies": [{"id": "edrinoj", "text": "&gt;Does this mean that the spread for the top middle column in the Freddie Max table, 205-210, is for 2.05-2.10% LIBOR? Or what does the 205-210 mean  in practice?\n\nIt's a matrix. Since that particular example is fixed rate, look at the left column (you'll see 5 / 30), scan across and for 65% LTV, you will use the 5 year UST (currently 2.56%) and add 2.05-2.10%, so all in coupon if i were quoting today would be \\~4.61%. When this grid was posted (I'd guess around 11/15/18), treasuries were 30 bps higher, but during the last month there has been a big rally in the bond markets, so rates are much lower today.\n\nYou'd use 30-day LIBOR as an index for a floating rate loan.\n\n&amp;#x200B;\n\n&gt;What does the All-In Rate reading 4.96-5.01 mean? One of these two, spread or All-in rate, has to be the interest rate for the mortgage right? Which one is it and what does the other mean to tell me?\n\nYes, the all in rate is the interest rate. Spread represents the risk premium that the lender demands (over a risk-free index) to lend you that money. Think about it this way - the lender has a pot of cash and they could just buy a 5-year US treasury and get 2.56%, risk free. You are not risk free, so in order to compensate the lender for taking a risk lending you that money, they want an extra 2.05%. That's called a risk premium.\n\n&amp;#x200B;", "replies": [{"id": "edrluky", "text": "I basically understand it all now! But one last question so I have no gaps in my understanding;\n\n&gt;Spread represents the risk premium that the lender demands (over a risk-free index) to lend you that money. Think about it this way - the lender has a pot of cash and they could just buy a 5-year US treasury and get 2.56%, risk free. You are not risk free, so in order to compensate the lender for taking a risk lending you that money, they want an extra 2.05%. That's called a risk premium.\n\nSo the 'All in Rate' numbers in the table are already including the spread values? IE the 4.96-5.01 all-in rates already are factoring in the 205-210 spread numbers it is next to? All in rate = spread(ie risk premium) + risk free rate? (risk free itself being based on an index rate like LIBOR or UST?)\n\nThank you so very much for your help!!! This was all an alien language to me yesterday!", "replies": [{"id": "edrprr1", "text": "Yep that\u2019s right. ", "replies": [{"id": "edrqsv9", "text": "Thank you!!!! I get it all now!!\n\nYou are a GOD SEND!\n\nMay good Karma repay you in all the ways me humbly up voting your answers does not. :)", "replies": [{"id": "edt0ttg", "text": "Happy to help. Good luck!", "replies": [], "depth": 7}], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}, {"id": "edrh07t", "text": "How is loan origination at a life co treating you? Do life co's typically provide a base salary or is it all commissioned? I am in conduit production and securitization and life co's are basically snatching away market share from me haha. The small sub 5MM deals in secondary/tertiary markets used to be safe for conduits as life cos didnt focus on those deals. We used to only compete with local banks but they would not offer 10 year fixed non recourse. Now when small life co's are doing those deals and offering 10 year fixed, non recourse and can lock rates at application, you basically neutralize all our advantages. ", "replies": [{"id": "edrhil7", "text": "Life co world is good. We\u2019re all facing competition. My platform does sizeable floating rate business, so I\u2019m competing with banks too. We also have a debt fund, which has been a big focus for us, but so does everyone else now, so steep competition all around. \n\nWe focus on big deals, minimum $25M, but I\u2019ve done about $1.7B over the past 2 years across 18 deals, so our average is closer to $80M.\n\nCompensation is typically salary + bonus, but heavily dependent on the mothership insurance business, which is always a mixed bag year to year. ", "replies": [{"id": "edri6gf", "text": "Good stuff. $80MM is awesome, I am guessing at that average, your dealing with mostly institutional sponsors? I do all conduits, no SASB, so smaller middle market deals. The next recession will be my first, so I am just concerned about the viability of CMBS. Even the December headwinds in the stock market killed us and our breakevens are like 200 bps right now and very little is getting done. I can only imagine what happens when shit hits the fan. I really like the team here and I want to stay here long term in CMBS production but its the long term viability of CMBS as a product type that is making me nervous. I dont know whether CMBS will ever again finance 25% of commercial real estate like it used to. the 10 year fixed non recourse structure alone is no longer a great selling point when other financing sources are offering the same thing. I think the DUS shops or production at GSE themselves might be a little more stable, would you agree?", "replies": [{"id": "edrjqzu", "text": "Yea, I personally would recommend you get out of CMBS if you have opportunity and want to stay in CRE finance long-term. Its a tough business and doesn't have a great reputation... most borrowers I know would only go to CMBS as a last resort. You're probably seeing a lot of limited service hotels in tertiary markets, B &amp; C strip centers with pot shops, small office properties with no credit, etc. Not the best of the best. CMBS also has the bad reputation to re-trade borrowers before closing, especially once the b-piece buyers and rating agencies slash it to hell during securitization. It's not a great way to build relationships with borrowers, and that's really the business we're in.\n\nDUS shops are great, you'll see a lot of volume, but your career will be limited to multifamily. Agency loans tend to be very \"programatic\" and you will suffer building your underwriting and credit skills.\n\nIf you can get to a bank or lifeco, i think that's your best bet to further your real estate finance career.", "replies": [{"id": "edveb5w", "text": "Thank you so much for the insight and advice! I will give it a thought, I am going to take the next year or two to get a little more seasoned, sharpen my craft. Long term, I actually really like the multifamily product type. So, if I get the opportunity to work at a GSE, a bank's multifamily group like Well's multifamily capital or a life co'- Prudential or Barrings agency/multifamily group, it will be a ideal and a good fit given my goals. And I would definitely want to be in a production role- do you also think it will typically be a base pay plus bonus for production opportunities at the places I mentioned? Or are 100% commissioned opportunities more common? Thanks once again!", "replies": [{"id": "edvgvbd", "text": "Happy to help.... Those outfits will be salary + bonus. Good luck!", "replies": [], "depth": 7}], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "edpbkve", "text": "2. Term / Amort\n\nTerm: duration of the loan; \nAmort: amortization\n\n7 / 30 means the loan will have 7 years of payments, but payments will be based off of 30 years of amortization.\n\nWould advise studying all the terms and concepts of the table. Extremely basic and should help tremendously when understanding mortgage financing. Search \u2018Amortization Table\u2019 and try to recreate one yourself using a spreadsheet program such as Excel or Google Sheets.\n\nEdit: With the above example, a large payment will be required to pay off the loan at maturity (end of term) or capital event (sell property).\n\nResidential mortgages are typically 30 / 30, meaning after the last payment the principal on the loan will be fully paid off.", "replies": [], "depth": 1}]