If the debt service on $4,165,016 is $600,000 per year, their interest rate is around 14%
maybe we should refinance the debt?
The debt service probably includes interest as well pay down of bond itself.
I had used a 30 year mortgage in my calculation.If they only have 9 years left on the amortization, and their payments include principle and interest, they're only paying 6%.
If the debt service on $4,165,016 is $600,000 per year, their interest rate is around 14%
ReplyDeletemaybe we should refinance the debt?
ReplyDeleteThe debt service probably includes interest as well pay down of bond itself.
ReplyDeleteI had used a 30 year mortgage in my calculation.
ReplyDeleteIf they only have 9 years left on the amortization, and their payments include principle and interest, they're only paying 6%.