Loan with Draw Amounts

[Huber57]

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

 

[Bob I]

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.

 

[Junge]

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

 

[joeu2004]

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.

 

[Bob I]

Oopsie! Reversed the amounts of the draw.

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