Cost Savings
Sample Defeasance Cost Savings
| LOAN EXAMPLE | AST’S COSTS | COMPETITOR’S COSTS | |||
|---|---|---|---|---|---|
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| Loan Terms | Third Parties | Fees | Third Parties | Fees | |
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| Origination Date | 12/1/2011 | Accountant | $3,500 | Accountant | $3,500 |
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| Maturity Date | 1/1/2022 | Securities Custodian | $3,500 | Securities Custodian | $4,000 |
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| Defeasance Date | 10/1/2018 | Servicer Processing | $15,000 | Servicer Processing | $15,000 |
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| Open Window | 3 Months | Servicer’s Counsel | $15,000 | Servicer’s Counsel | $15,000 |
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| Original Principal Balance | $10,000,000 | Successor Borrower Legal | $5,500 | Successor Borrower Legal | $7,500 |
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| Principal Balance at Defeasance | $8,900,041.79 | Consulting | $5,000 | Consulting | $12,500 |
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| Interest Rate | 5.00% | ||||
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| Amortization | 30-Year | Securities Cost | $9,530,238 | Securities Cost | $9,543,420 |
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| Average Total Fees | $47,500 | Average Total Fees | $57,500 | ||
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| Potential Residual Value | $125,000 | Total Estimated Defeasance Cost | 9,577,738 | Total Estimated Defeasance Cost | $9,600,920 |