OLD LOAN NEW LOAN
Initial loan amount: $ 2,000,000 $ 2,200,000
Current loan balance: 1,925,000 NA



Initial loan term: 10 years l0 years
Remaining loan term: 6 years 10 years



Interest rate: 10.75% 8.50%
Amortization schedule: 25 years 30 years
Monthly payment: $19,242 $ 16,916



Portion of monthly payment applied to Interest (average): $17,105 $15,719



Monthly tax savings @ 40%: (6,842) (6,287)



Monthly after-tax Interest cost $10,263 $9,432
Monthly after-tax Interest savings:
$831


xl2



Annual after-tax interest savings:
9,972(a)
New money obtained:
$200,000
Less refinancing costs:
(65,000)
Net new money:
$135,000



Annual Interest Income on new money @ 3%:
$4050
Lets Income taxes @ 4O%
(1,620)
Net annual Interest income:
$ 2,430(b)



TOTAL ANNUAL BENEFIT FROM NEW LOAN (a+b=c):
$12,402(c)



Time to "breakeven" for new loan if old loan has:

1% prepayment penalty:
19 months
2% prepayment penalty:
39 months
3% prepayment penalty:
58 months
     
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  FIRST FUNDING OF NEW YORK, LLC
349 West Commercial Street
Suite 2200
East Rochester, NY 14445
800-777-4422
585-249-1099
585-249-1091 fax
e-mail: loans@firstfunding.com