Calculating the Debt Service

Requirements

You must calculate the Supplemental Mortgage LoanSupplemental Mortgage LoanMortgage Loan purchased by Fannie Mae that is subordinated to, and has a Mortgage Loan Origination Date after, the Senior Mortgage Loan that is also owned by Fannie Mae. amount based on the combined debt service amounts of all Pre-Existing Mortgage LoansPre-Existing Mortgage LoansMultifamily residential real estate loan secured by Liens against the Property having higher priority than the Lien securing the Subordinate Loan purchased by Fannie Mae. plus the Supplemental Mortgage LoanSupplemental Mortgage LoanMortgage Loan purchased by Fannie Mae that is subordinated to, and has a Mortgage Loan Origination Date after, the Senior Mortgage Loan that is also owned by Fannie Mae. , as outlined in the following tables.

Pre-Existing Mortgage Loans
If the Interest Rate Type is…	Use an amortizing Debt Service Amount based on the…
Fixed Rate	Gross Note RateGross Note RateInterest rate stated in the Loan Documents. .
Adjustable Rate	DeliveredDeliveredSubmission of all correct, accurate, and certifiable documents, data, and information with all applicable documents properly completed, executed, and recorded as needed, and any deficiencies resolved to Fannie Mae’s satisfaction. Mortgage LoanMortgage LoanMortgage debt obligation evidenced, or when made will be evidenced, by the Loan Documents, or a mortgage debt obligation with a Fannie Mae credit enhancement. amount; amortization term; and Maximum Note RateMaximum Note RateEquals the sum of the: minimum Cap Strike Rate as set by Fannie Mae; and Mortgage Loan margin equal to the sum of the Investor spread, Guaranty Fee, and Servicing Fee. per the applicable Part III Chapters.

Supplemental Mortgage Loan
If the Interest Rate Type is…	Use an amortizing Debt Service Amount based on the greater of the Gross Note Rate or the…
Fixed Rate	applicable Underwriting Interest Rate Floor per Form 4660.
Adjustable Rate	Maximum Note RateMaximum Note RateEquals the sum of the: minimum Cap Strike Rate as set by Fannie Mae; and Mortgage Loan margin equal to the sum of the Investor spread, Guaranty Fee, and Servicing Fee. per the applicable Part III Chapters.