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Defeasance Loan Calculator

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Defeasance Calculator

 

The Defeasance Calculator is used to estimate the cost to defease a commercial loan. The cost estimate is broken down into two components: the cost to purchase the securities and the transaction costs. You may also choose the servicer and the transaction costs will be tailored to the most recent costs of the servicer.

 
*Property Name:
*Purpose of Defeasance:
*Servicer:
*Loan Amount:
* Loan Term:
Interest Only Period:
*Amortization:
*Coupon/Interest Rate:
*Interest Calculation:
*Payment Day of Month:
*Note Dated:
*Estimated Defeasance Date:
I have read and understand the disclaimer:

DISCLAIMER: There is NO WARRANTY, expressed or implied, for the accuracy of this information or it's applicability to your financial situation.  Please consult your own financial advisor.

 

** Please Note ** Once you enter your data and press calculate, a new window will open. Once you have finished any modifications you may make to the data, simply close the new window and return to Crefcoa.


What is Defeasance? Defeasance is a form of a prepayment fee on conduit loans redeemed prior to maturity. 

Prepayment options for fixed rate conduit loans include defeasance, declining fixed percentages and two yield maintenance options.

 

Defeasance allows the borrower to purchase substitute collateral for the conduit loan. With conduit loan defeasance, single or multiple US Treasury securities with varying maturities must be purchased in order to complete the defeasance. There is no minimum prepayment under Conduit Loan Defeasance, and in some circumstances, the borrower could actually receive a payment when the conduit loan is defeased.

 

Yield Maintenance is based on a minimum yield to the investor that purchased the conduit loan (or the Fannie Mae security backed by the loan) and is basically the present value of the difference between the conduit loan’s interest rate and current rates with a similar maturity date as the original conduit loan. Historically, Yield Maintenance terms have been 6 months less than the actual conduit loan term.

 

How much will it cost to defease a conduit loan? Is your conduit loan maturing and you would like to calculate the defeasance cost? Crefcoa provides a defeasance loan calculator online to assist our visitors with these questions and more.

 

Conduit Financing Provides The Lowest Rates To Borrowers

CMBS loan programs provide the lowest fixed rates...period. Why? The loan is funded with bond money. Our investment banking partners securitize (bundle) the loan and sells mortgage backed securities to investors with the asset (property) serving as the collateral for the bonds. Property quality grade, tenant quality, tenant bond grade, property location, management, seasoning, property cash-flow, and area CAP rates all impact a borrowers interest rate either positively or negatively.

 

Conduit Lending Overview

Conduit loans have been around since the mid '90s and are somewhat unfamiliar to most commercial real estate investors. A Real Estate Conduit Loan is a permanent, fixed-rate commercial real estate loan structured on a non-recourse basis according to specific underwriting and documentation standards. These standards facilitate the loan's ultimate securitization.

 

Crefcoa provides conduit loan programs for commercial real estate property types nationwide. Our minimum loan size for conduit financing is $1,000,000. You can review all of our conduit loan program guidelines online, check conduit loan interest rates online, calculate the cost to defease your CMBS loan, and even track and review the status of your conduit loan throughout the entire commercial loan process! Contact a commercial mortgage specialist at 1-844-359-6413 for more information.

 
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