Loan with Draw Amounts
 

I have a question about a loan with draws.

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 can't find any loan calculators that will help me with this. Any thoughts
would be greatly appreciated.

Sincerely,
huber57

Loan with Draw Amounts
 

perhaps start at the 1 year point with the total amount equal to the
amount borrowed plus the accrued interest. that amount would be the
$100,000 + (6%*100,000)+ (4.5%*75,000)+ (3%*50,000)+ (1.5%*25,000) or

$100,000+ 6,000+3,375+1,500+375 OR $111,250 as the loan amount to be
repaid at 6% over your 5 years.


Huber57 wrote:

I have a question about a loan with draws.

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 can't find any loan calculators that will help me with this. Any thoughts
would be greatly appreciated.

Sincerely,
huber57

Loan with Draw Amounts
 

Your bank is too expensive, I think.
Try this
PMT(0.06,5,-1*25,000*(4+0.06*(4/4+3/4+2/4+1/4)),,1)
Your amount to repay after 1 year is 103,750 and the yearly payment
23,235.73
Junge

"Bob I" skrev i en meddelelse
...
perhaps start at the 1 year point with the total amount equal to the
amount borrowed plus the accrued interest. that amount would be the
$100,000 + (6%*100,000)+ (4.5%*75,000)+ (3%*50,000)+ (1.5%*25,000) or

$100,000+ 6,000+3,375+1,500+375 OR $111,250 as the loan amount to be
repaid at 6% over your 5 years.


Huber57 wrote:

I have a question about a loan with draws.

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 can't find any loan calculators that will help me with this. Any
thoughts would be greatly appreciated.

Sincerely,
huber57

Loan with Draw Amounts
 

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.

Loan with Draw Amounts
 

Oopsie! Reversed the amounts of the draw.

Junge wrote:

Your bank is too expensive, I think.
Try this
PMT(0.06,5,-1*25,000*(4+0.06*(4/4+3/4+2/4+1/4)),,1)
Your amount to repay after 1 year is 103,750 and the yearly payment
23,235.73
Junge

"Bob I" skrev i en meddelelse
...

perhaps start at the 1 year point with the total amount equal to the
amount borrowed plus the accrued interest. that amount would be the
$100,000 + (6%*100,000)+ (4.5%*75,000)+ (3%*50,000)+ (1.5%*25,000) or

$100,000+ 6,000+3,375+1,500+375 OR $111,250 as the loan amount to be
repaid at 6% over your 5 years.


Huber57 wrote:

I have a question about a loan with draws.

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 can't find any loan calculators that will help me with this. Any
thoughts would be greatly appreciated.

Sincerely,
huber57