On May 23, 7:23 am, Huber57 wrote:
I want to borrow $100,000 with four draws of $25K at 3 month intervals ($25k
now, $25K more in 90 days etc.). The interest rate is 6%. Repayment starts
in 12 months. It is repayable over 5 years.

I think the answer depends on the term of the line of credit during
the draw period. Usually, you must make at least interest-only
payments during the draw period. Are you saying that you can get away
without making any payments during the draw period(!)?

Assuming you must make interest-only payments during the draw period,
and assuming that eventually you borrow the full $100,000, I believe
that at the end of the 1-year draw period, you will have a standard
loan of $100,000 at 6% over 5 years. If payments are monthly, I
believe the approximate payment would be:

=pmt(6%/12, 12*5 , -100000)

During the draw period, I presume your minimum (interest-only) monthly
payments will vary with the amount drawn:

1st 3 months: =25000*6%/12
2nd 3 months: =50000*6%/12
3rd 3 months: =75000*6%/12
4th 3 months: =100000*6%/12

If you do not have to make at least interest-only payments during the
draw period(!), you might simply add that accumulate interest ($3750)
to the principal for the 5-year loan. But I suspect the unpaid
interest would compound during the draw period. Again, check the
terms of the line of credit.