underwriting and offer workspaces · Intermediate
Loan-offer cash-flow comparison
Normalize the economics of multiple loan offers. Includes comparable dated cash flows with fees holdbacks and payoff assumptions.
Your assumptions
Illustrative starting values. Replace them with your own evidence. Inputs stay in this browser.
Your scenario, explained
Results
Calculation assumptions
Version 1.0.0 · Educational scenario, subject to the stated assumptions.
How this calculation works
Method and assumptions
For each offer, deduct fees, funded reserves and funded holdbacks from principal to show cash available at closing. Sum regular payments and remaining principal at the common exit. Financing cost equals interest plus upfront fees plus entered exit costs; refundable reserves and holdbacks are not treated as fees.
Worked example
Over the default 60-month hold, Offer A funds $3 million at 6.25%, with 12 IO months then 30-year amortization, $45,000 upfront fees and $60,000 exit costs. Its nominal financing cost is $1,024,359.20 and closing cash is $2,780,000 after reserves and holdback. Offer B funds $3 million at 6.5%, amortizes immediately over 30 years, and has $30,000 upfront and $30,000 exit costs. Its cost is $1,006,051.77 and closing cash is $2,920,000. The lower coupon is not the lower-cost offer here.
Before using the result
Know the boundaries
- Educational scenario, not a quote, commitment, approval, appraisal or payoff statement.
- Defaults and thresholds are editable illustrations; the executed documents and lender underwriting control.
- Principal is fully funded at closing, including the entered reserve/holdback amounts, and accrues interest in full. Undrawn commitments require a draw-schedule model.
- No discounting, taxes or probability weighting. Exit costs must be obtained separately. Restricted-cash releases are not modeled; initial net proceeds and nominal financing costs are separate comparisons.