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Comparing Loans

  1. #1
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    Comparing Loans

    have a business mortgage of $ 5 M which was taken out several years ago and the balance owing currectly is $ 1.5M at an interest rate of 5.5. I require $ 10M for expansion purposes which I can finance as follows:
    1) $3.5M can be advanced on the original loan (Int 5.5%)
    2) I have cash of $ 1.2 which I can deposit into the current mortgage and receive interest at 5.5 % until the funds are required to be drawn out of the mortgage a/c
    3) I can borrow $ 6.50 from the current bank at 6.0%. The new loan has a raising fee of 1.2% and If I pre-pay i.e settle above the minimum payment the cost is 0.2% per month on the difference A opposition bank is prepared to lend me $ 6.5M at 5.85%
    4) I can borrow the full $ 10 from an opposition bank at 5.75%. However If I cancel the existing morgage with the current bank, there is a penalty for cancellation of the morgage of 1.2%.

    I would like to set up a spreadsheet to do a comparison of the vsrious options


    It would be appreciated if someone could assist me

  2. #2
    Forum Guru JosephP's Avatar
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    Re: Comparing Loans

    all your figures seem to have shrunk http://windowssecrets.com/forums/sho...mortgage-Loans
    Josie

    if at first you don't succeed try doing it the way your wife told you to

  3. #3
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    Re: Comparing Loans

    You should start up a collection so people can take advantage of that 5.5% interest rate in #2! You provide a 5% return and keep the 0.5% extra as revenue to fund your expansion.
    Pauley
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    If I helped with your issue, I'd appreciate a rep bump (hit the '*' icon to the bottom left of this post).

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